Kazakhstan Signs Network School Deal as Malaysia Revokes License

Balaji Srinivasan’s Network School, a community of “digital nomads,” is eyeing a new campus in Kazakhstan after its Forest City campus had its business license revoked over alleged premises-use violations. 

A memorandum of understanding was signed between Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry, Zhaslan Madiyev and Srinivasan to establish the first Network School campus in Kazakhstan, according to a statement from the ministry. 

The Kazakhstan agreement gives the Network School a potential new base after its Johor operation was ordered to cease operations effective Wednesday. Kazakhstan has been positioning itself as an emerging technology hub, including plans for Central Asia’s first “crypto city” in Alatau. 

“Ironically, this whole drama with Balaji literally validated the network state thesis,” said Dragonfly Capital managing partner Haseeb Qureshi. “The whole idea of a network state is taking a dense group of talent and capital, and collectively negotiating with states. The Malaysia drama set up Balaji to negotiate better terms with another state to copy and paste the network there. “

“Our new campus will become a haven for global techno-optimism, with expedited visas, streamlined redomiciliation, and active recruitment of talent,” Srinivasan said Tuesday.

Network School faces loss of Malaysia Digital status 

The new memorandum of understanding with Kazakhstan comes as the Forest City campus faces regulatory action on several fronts. 

On Tuesday, the Iskandar Puteri City Council (MBIP) revoked the business license of NSO Malaysia Sdn Bhd, which operates the Network School, alleging the company breached licensing conditions and premises usage requirements. 

This led to the Malaysia Digital Economy Corporation (MDEC) announcing it is taking immediate steps to revoke the Malaysia Digital status of NSO Malaysia, which requires companies under the program to follow all local and federal laws. 

Malaysia Digital is a recognition awarded to qualified technology and digital companies, providing them with tax incentives, freedom of ownership and allowing the employment of local and foreign workers, among other incentives. 

Meanwhile, Onn Hafiz Ghazi, Chief Minister of Johor State, has urged Malaysia’s federal authorities to continue investigating whether the Network School violated immigration laws. 

Related: Balaji seeks Malaysia deal, threatens exit after Network School probe 

“This matter cannot be taken lightly, especially since Johor is a strategic entry point for the country bordering Singapore. Any weaknesses or abuse of the immigration system must be addressed promptly, firmly, and without compromise,” said Onn. 

On Friday, Srinivasan denied reports that the Network School was shutting down, claiming that it had received two notices, with one notice requiring it to “change the text of a sign” and the other regarding a coworking site, created by joining two adjacent units, that had a valid license on one side, not on the other. 

“We have a remedial period for both issues, and will remediate them shortly. But our members are otherwise unaffected,” he said. 

Cointelegraph reached out to Srinivasan and Network School for comment. 

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