rewrite this title Network School Expands to Kazakhstan as Malaysia Revokes Digital Status Over Compliance

Key Takeaways:

Network School inked an MOU with Kazakhstan for a new campus to build.Malaysia is withdrawing the project’s digital certification due to breaches of the licensing agreement.The shift demonstrates the crypto communities’ experience with navigating regulation.’

With a regulatory hurdle in Malaysia, Balaji Srinivasan’s Network School is continuing to expand globally. The organization has signed a memorandum of understanding (MOU) with the Republic of Kazakhstan to establish a new campus while Malaysian authorities move to shut down its operations in Johor over licensing compliance issues.

Kazakhstan Welcomes Network School

Balaji Srinivasan announced on X that Network School had reached an agreement with Kazakhstan to establish a new campus designed 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 will also establish a pool of “global techno-optimists,” granting various visas, facilitating business redomiciliation and providing an active recruitment programme for talent from abroad, Srinivasan said.

This comes as part of Kazakhstan’s initiative to establish itself as a hub of blockchain and digital assets in the region. The country’s push in crypto mining, digital innovation and the recent announcement of the creation of a dedicated micro economic zone for crypto development make it an increasingly promising destination for Web3 companies.

A Strategic Pivot

Despite difficulties in Malaysia, Network School is expanding to Kazakhstan due to a need for regulatory certainty there. Rather than slowing its global ambitions, the organization appears to be shifting toward jurisdictions actively competing for blockchain entrepreneurs and digital investment.

Malaysia Tightens Regulatory Enforcement

At the same time, Malaysian authorities are taking action against NSO Malaysia Sdn. Bhd., the operator of Network School’s Forest City campus.

The company’s business license was cancelled by the City Council of Iskandar Puteri (MBIP) after the council found that the company had not met the conditions and regulations for using its premises according to the city ordinance. The order will stop the business from operating starting July 22nd.

In response to MBIP’s decision, the Malaysia Digital Economy Corporation (MDEC) has decided to immediately start conditioning the revocation of MBIP’s Malaysia Digital status. It is only awarded to licensed and regulated companies that represent new technologies.

The government clarified that Malaysia is still open to the investment of valuable digital companies, but said that no company is above the laws of Malaysia. Johor state government also charged immigration and other federal authorities to investigate further if there are other breaches in the law in the state.

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Crypto Communities Face Growing Regulatory Scrutiny

Network School has garnered industry interest for its vision of a worldwide network of communities of technologies, entrepreneurial intent and blockchain innovation, working remotely.

Overall, regulatory trends regarding crypto related activities are still on a divergent path, as seen in Kazakhstan versus Malaysia.

Some governments are introducing incentives to bring blockchain talent and investment in, and others are focusing more on licensing compliance, operational oversight, local regulation etc.

For crypto organizations expanding internationally, regulatory alignment is becoming just as important as technological innovation when choosing where to build the next generation of Web3 ecosystems.

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