China's top Internet retailer has prohibited the use of Bitcoin on its shopping platforms amid a regulatory crackdown targeting the digital currency.

The decision will make practical use of bitcoin even more difficult in China, despite massive interest from investors in the alternative currency.

Alibaba said in a post on its website that the regulation will take effect on January 19, and would extend to other digital currencies including Litecoins.

John Spelich, a company spokesman, confirmed the policy in an email saying the ban was implemented "in the interest of consumer protection."

Demand for bitcoin has been particularly strong in China, where investors have eagerly embraced the currency and helped drive its price to dramatic highs above $1,000 in recent weeks.

But regulators have taken a dim view of Bitcoin, and the central bank last month issued rules that prohibit financial institutions from dealing in the digital currency.