Balaji Srinivasan's Network School is pressing ahead with its global expansion despite a significant regulatory setback in Malaysia. The organization has signed a memorandum of understanding (MOU) with the Republic of Kazakhstan to establish a new campus, even as Malaysian authorities move to shut down its operations in Johor over licensing compliance violations. Srinivasan, a former chief technology officer at Coinbase and former general partner at Andreessen Horowitz, launched Network School as a physical gathering of his broader "network state" concept—communities of like-minded technologists who organize digitally and eventually seek to establish physical footprints.

Kazakhstan Welcomes Network School

Balaji Srinivasan announced on X that Network School had reached an agreement with Kazakhstan to build a new campus intended to attract entrepreneurs, developers, and technology talent.

I am pleased to announce that a memorandum of understanding has been signed between the Republic of Kazakhstan and Network School. Our new campus will become a haven for global techno-optimism, with expedited visas, streamlined redomiciliation, and active recruitment of talent. pic.twitter.com/R20i8UAYoc

— Balaji (@balajis) July 21, 2026

The programme aims to create a community of "global techno-optimists" by offering various visa types, facilitating business redomiciliation, and actively recruiting talent from abroad, Srinivasan said. As a memorandum of understanding, the agreement represents a statement of intent between the parties rather than a binding commitment, meaning the specifics of campus development and operational timelines will depend on subsequent implementation agreements.

The agreement aligns with Kazakhstan's broader push to position itself as a regional hub for blockchain and digital assets. The country has been promoting crypto mining, advancing digital innovation initiatives, and recently announced the creation of a dedicated micro economic zone for crypto development. Kazakhstan has been cultivating its digital asset ecosystem for several years, notably absorbing an influx of crypto miners after China's 2021 mining crackdown, and has operated a regulatory sandbox for digital assets under its Astana International Financial Centre (AIFC) framework—factors that make it an increasingly attractive destination for Web3 companies.

Malaysia Tightens Regulatory Enforcement

Concurrently, Malaysian authorities are taking enforcement action against NSO Malaysia Sdn. Bhd., the operator of Network School's Forest City campus in Johor.

The City Council of Iskandar Puteri (MBIP) cancelled the company's business license after determining that it had failed to comply with the conditions and regulations governing the use of its premises under city ordinance. The cessation order takes effect July 22nd.

In response to MBIP's decision, the Malaysia Digital Economy Corporation (MDEC) moved to immediately begin the process of revoking the entity's Malaysia Digital status—a designation granted only to licensed and regulated companies representing new technologies. The Malaysia Digital status, formerly known as Multimedia Super Corridor (MSC) status, provides qualifying companies with tax incentives and other benefits tied to operating within Malaysia's regulated digital economy framework.

The government emphasized that Malaysia remains open to investment from valuable digital companies but stated that no company is above Malaysian law. The Johor state government has also directed immigration and other federal authorities to investigate whether additional legal violations have occurred in the state.

A Strategic Pivot Amid Divergent Regulatory Paths

Network School has attracted industry attention for its vision of building a worldwide network of technology communities focused on entrepreneurship and blockchain innovation, operating remotely.

The contrasting developments in Kazakhstan and Malaysia illustrate the divergent regulatory paths that crypto-related projects face across jurisdictions. Some governments are actively introducing incentives to attract blockchain talent and investment, while others are prioritizing licensing compliance, operational oversight, and local regulatory enforcement.

For crypto organizations pursuing international expansion, regulatory alignment is proving to be as critical a consideration as technological innovation when selecting where to establish the next generation of Web3 ecosystems.