In February, JPMorgan Chase briefly excited bitcoin enthusiasts when it launched its own cryptocurrency, JPM Coin. But soon after the announcement, the crypto community and tech media aptly pointed out that JPM Coin is an internal token for settling transactions with JPM clients, permissioned rather than “permissionless,” and fully controlled by JPMorgan (JPM)—not so exciting to crypto flag-wavers.

In the days since June 18, Facebook (FB) has had a somewhat similar experience. The embattled tech giant announced it would launch in 2020 a new cryptocurrency called Libra (in partnership with a collection of big-name “founding members” including Visa, MasterCard, PayPal, Stripe, eBay, Uber, and Lyft) and a digital wallet called Calibra. While some analysts and research firms are bullish that Libra can bring cryptocurrency mainstream, the cryptocurrency industry mostly has questions and criticism, like whether Libra coin can be truly decentralized when Facebook execs are building it, and whether Libra’s blockchain can ever be truly open and public when there’s a carefully-selected roundtable of “members” behind it. UBS, in a note on Libra, declared, “We have more questions than answers.”

JPMorgan CEO Jamie Dimon also has questions.

“Will they follow banking rules or KYC, BSA, AML,” Dimon said in an interview with Yahoo Finance editor-in-chief Andy Serwer, “or will they not? But they obviously want to serve their clients, and that’s fine. I also want to be able to serve their clients, too. We would like to do some of it too, ourselves, and we don’t always want to be forced into someone else’s ecosystem.”

Questions about Libra’s plan for KYC/AML

Dimon is referring to “know your customer” rules (KYC) and “anti-money laundering” (AML) rules, which stem from the Bank Secrecy Act of 1970 (BSA). Any U.S. bank or financial service company holding and transmitting money on behalf of customers is required to comply with KYC and with BSA/AML.

And Dimon is right to point to those acronyms; other critics have also picked up on the fact that Libra’s white paper makes no mention of KYC, and just one mention of AML (bolding ours): “The existing blockchain systems have yet to reach mainstream adoption... Some projects have also aimed to disrupt the existing system and bypass regulation as opposed to innovating on compliance and regulatory fronts to improve the effectiveness of anti-money laundering. We believe that collaborating and innovating with the financial sector, including regulators and experts across a variety of industries, is the only way to ensure that a sustainable, secure and trusted framework underpins this new system.”