Network School signs Kazakhstan MoU as Malaysia revokes Forest City operator’s license
Malaysia’s digital agency also began steps to revoke NSO Malaysia’s Malaysia Digital status after alleged licensing and premises-use breaches.
Balaji Srinivasan signed an MoU with Kazakhstan’s digital development minister to establish Network School’s first campus in the country. The move lands as Malaysian authorities revoke the Forest City operator’s business license and start a process that could strip its Malaysia Digital status.
Key Takeaways
- Kazakhstan’s digital development minister Zhaslan Madiyev and Balaji Srinivasan signed an MoU to establish Network School’s first campus in Kazakhstan.
- Iskandar Puteri City Council revoked NSO Malaysia Sdn Bhd’s business license, alleging breaches of licensing conditions and premises usage requirements.
- Malaysia’s digital agency began “immediate steps” to revoke NSO Malaysia’s Malaysia Digital status, citing compliance with local and federal laws as a requirement.
- Johor’s chief minister urged continued federal scrutiny into whether the Network School violated immigration laws.
Kazakhstan Signs MoU for Network School’s First Campus
Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry Zhaslan Madiyev and Balaji Srinivasan signed a memorandum of understanding to establish the first Network School campus in Kazakhstan, per a statement from the ministry.
The MoU is an intent document rather than a final operating license. Still, the timing matters. It creates an alternative jurisdictional path for Network School precisely as its Malaysia operating entity faces escalating administrative pressure, including a municipal license revocation and a separate move that could remove a key federal-linked recognition status.
Kazakhstan’s pitch is consistent with its broader positioning as an emerging technology hub. The country has also floated plans for Central Asia’s first “crypto city” in Alatau, a framing that helps explain why Network School is being presented as a viable inbound project.
Malaysia Revokes the Forest City Operator’s License and Targets Malaysia Digital Status
On Tuesday, Iskandar Puteri City Council (MBIP) revoked the business license of NSO Malaysia Sdn Bhd, the operator of Network School’s Forest City campus in Johor. MBIP alleged breaches of licensing conditions and premises usage requirements.
Malaysia Digital Economy Corporation (MDEC) then said it is taking immediate steps to revoke NSO Malaysia’s Malaysia Digital status, citing that companies under the program must follow all local and federal laws.
That status is not cosmetic. Malaysia Digital is described as a government recognition for qualified technology and digital companies tied to incentives including tax incentives, freedom of ownership, and the ability to employ local and foreign workers. If the revocation is finalized, NSO Malaysia would lose access to that incentive stack, tightening the operational runway even if the group can remediate local licensing issues.
The excerpted timeline also describes the Johor operation as being ordered to cease operations effective Wednesday, but it does not specify the issuing authority or the precise scope of the cessation order.
Balaji’s Response: Two Notices, a Remedial Period, and ‘Members Unaffected’
Srinivasan pushed back on the idea that the Malaysia operation is shutting down. On Friday, he said Network School received two notices, one requiring it to “change the text of a sign,” and another tied to a coworking site created by joining two adjacent units where one side had a valid license and the other did not.
“We have a remedial period for both issues, and will remediate them shortly. But our members are otherwise unaffected,” Srinivasan said.
Authorities and political leaders are signaling a harder line. Johor Chief Minister Onn Hafiz Ghazi urged Malaysia’s federal authorities to continue investigating whether the Network School violated immigration laws. “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,” he said.
The result is operational ambiguity. Srinivasan describes remediable compliance issues with no member impact, while the operator’s license has been revoked and senior officials are calling for continued immigration-law scrutiny.
Signals to Watch for Network School pivots to Kazakhstan after
The next concrete signal is whether MDEC finalizes the revocation of NSO Malaysia’s Malaysia Digital status, including any effective date and whether an appeal or remediation pathway is offered.
Traders tracking jurisdiction risk will also want the underlying documentation from MBIP detailing the alleged licensing-condition and premises-use breaches, and whether NSO Malaysia can regain a valid license within the stated remedial window.
On enforcement risk, updates from Malaysian federal authorities on the immigration-law investigation referenced by Johor’s chief minister would clarify whether this remains administrative friction or escalates into broader constraints.
On the Kazakhstan side, the key gap is specificity. The MoU’s concrete terms have not been disclosed in the excerpt, including campus location, timeline, and legal structure, and whether follow-on binding agreements are signed.
What This Says About Jurisdiction Risk for Founder-Led Crypto Communities
I treat the Kazakhstan MoU as an option being written in real time, not a finished relocation. The threshold that matters is whether it converts into binding terms with a clear legal structure and timeline, because right now the Malaysia side is the only jurisdiction with visible enforcement actions attached.
This looks more like a sentiment catalyst than a fundamental shift until the Malaysia Digital status question is resolved. If Malaysia Digital is revoked and the Malaysia campus cannot quickly regain a valid operating license, the setup starts to look structural rather than narrative-driven, because the incentive stack and staffing flexibility are part of what makes these founder-led communities function day to day.
