(Yicai Global) Sept. 4 -- Chinese regulators are monitoring local initial coin offering platforms as requested by the central government, with some authorities ready to report their inspection results to superiors before the end of work today.

Initial coin offerings, or ICOs, are a way for blockchain companies to raise funds by selling online virtual currencies, such as bitcoin and ethereum, and by issuing new cryptocurrencies, which allow them to bypass the requirements of an initial public offering.

The National Internet Finance Risk Control office recently issues a circular to municipalities and provinces, requesting they clean up coin offerings. The circular provides a preliminary list of ICO platforms whose executives regulators are looking into. Authorities are also monitoring company accounts to protect investors' interests.  

The circular lists a total of 60 platforms, including 12 in the southern province of Guangdong, which leads all regions in the number of platforms, eight in Shanghai and six in Beijing.

A provincial department forwarded the circular and even ordered agencies at lower levels to submit reports to the provincial-level internet finance risk control office by noon today.

Many leading platforms have suspended coin offering services in response to the toughened regulation. ICO coins slumped almost 36 percent on Sept. 2, wiping USD24.4 million (CNY160 million) off their value in 24 hours.

The unregulated approach to financing grew increasingly popular in the first half of the year as the price of bitcoin and other virtual currencies soared.

Some CNY2.6 billion (USD400 million) worth of cryptocurrencies were raised through coin offerings in China in the first half, more than traditional venture capital investment. Some 105,000 people were involved, July data from the National Committee of Experts on Internet Financial Security Technology shows.

A number of the offerings are overvalued, market insiders said, adding that the projects claiming to be worth tens of millions, or even hundreds of millions of yuan, do not deserve such a high valuation.