Balaji Srinivasan’s Network School in Forest City, Johor, has been officially ordered to shut down effective Wednesday, July 22. However, amid the regulatory crackdown in Malaysia, the crypto education initiative swiftly found a new home. Kazakhstan’s Minister of Digital Development Zhaslan Madiyev signed a Memorandum of Understanding with Srinivasan to establish the country’s first Network School campus.
Malaysia’s decision to halt campus operations involved multiple tiers of government, ranging from local to federal levels. The city council of Iskandar Puteri took the first step by revoking the business license of NSO Malaysia Sdn Bhd. Local authorities cited licensing violations and non-compliant site layouts used by the business entity.
Enforcement escalated beyond the municipal level as the Malaysia Digital Economy Corporation promptly revoked the ‘Malaysia Digital’ status previously granted to NSO Malaysia. Pressure mounted further when Johor Chief Minister Onn Hafiz Ghazi intervened, urging federal authorities in Kuala Lumpur to investigate potential immigration law violations within the project.
From Denial to Relocation
The cascade of license revocations directly contradicts Srinivasan’s statements from days earlier. On Friday, he strongly dismissed reports claiming the Network School would close, asserting that management had only received two warning letters from authorities regarding minor issues.
According to Srinivasan’s account, government warnings pertained only to signage installation and the use of one side of a co-working space that lacked an official permit. In reality, Network School’s operations in Malaysia came to a complete halt this week.
Alatau Becomes the Next Destination
Kazakhstan capitalized on Malaysia’s rejection. The agreement signed by Madiyev and Srinivasan aligns with the country’s economic blueprint, as the Kazakh government positions itself as a Central Asian tech hub, complete with plans to build its first crypto city in Alatau.
Srinivasan views the new jurisdiction as an ideal launchpad. “Our new campus will be a haven for global techno-optimism, with expedited visas and streamlined redomiciliation,” he emphasized regarding the official partnership with Kazakhstan.
For industry observers, the rapid relocation within hours is more than standard bureaucratic red tape. Haseeb Qureshi of Dragonfly Capital noted that this pattern serves as real-world proof of Srinivasan’s theory. “The Malaysia drama actually validates the network state thesis - talent and capital collectively bargaining with nation-states,” he said.
This incident underscores a key reality regarding geographic boundaries in the Web3 era. When one door closes, crypto talent can seamlessly transfer their full economic value to another jurisdiction. Modern institutions are increasingly trading national loyalty for regulatory efficiency.
Reported via Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
