Digital Currency Group Inc., one of the most prolific investors in bitcoin-related startups, is slowing down its deal-making pace.

“Recently, we haven't made as many investments in bitcoin,” said Ryan Selkis, director of investments, on stage at the Money20/20 conference running in Las Vegas this week.

Mr. Selkis cited several concerns about the sector, including increased compliance costs to launch a digital-currency-based startup, as well as the difficulty seeded startups will face in raising Series A rounds from venture capitalists. He also referred to “systemic risks” in the bitcoin market.

New York-based Digital Currency Group is itself a startup, launched by Barry Silbert, the former CEO of SecondMarket. DCG, which operates an investment arm, as well as a bitcoin over-the-counter trading firm, raised a round of funding that it announced this week from venture investors such as Bain Capital Ventures, FirstMark Capital and RRE Ventures as well as industry investors including MasterCard, New York Life and Transamerica Ventures.

Still, even though DCG’s mission is to “help build the foundation” for the blockchain and bitcoin industry, Mr. Selkis didn’t shy away from commenting on the current challenges that startups face.