# VI.2 KYC

KYC ensures the authenticity of the network and compliance with Anti-Money Laundering (AML) and counter-terrorism regulations. Only verified accounts are allowed to exchange AZC and only verified AZC balances can be exchanged.

The AZC balance of a pioneer is calculated as follows: S = (1) + (2) + (3)

* (1): Airdrop rewards based on speed
* (2): Invitation rewards
* (3): Rewards from project programs

For simplicity, we define different concepts of AZC balance as follows:

* Displayed balance: The total AZC is displayed in the Pioneer's account (includes unverified balance and verified balance)&#x20;
* Verified balance: The balance is verified through KYC activities


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