After Balaji Srinivasan’s “Digital Nomads” community internet school, Network School, faced regulatory crackdowns in Malaysia, it quickly pivoted to Kazakhstan. On Tuesday, the Iskandar Princess City Council (MBIP) revoked the business license of NSO Malaysia Sdn Bhd, the network school’s operating entity, citing violations of permit conditions and requirements related to premises use.
Malaysia Regulatory Action: MBIP Revokes NSO Malaysia Business License
The regulatory actions targeting the network school’s Malaysia campus cover three areas:
MBIP revokes the business license: On Tuesday, the Iskandar Princess City Council (MBIP) revoked the business license of NSO Malaysia Sdn Bhd on the grounds that it violated permit conditions and premises-use regulations.
MDEC initiates a digital status revocation process: Malaysia’s Digital Economy Corporation (MDEC) announced that it would immediately take steps to revoke NSO Malaysia’s Malaysia digital status. Malaysia digital status is an endorsement for qualifying tech and digital companies, granting qualifications such as tax incentives, freedom of ownership, and the ability to hire both local and foreign workers.
Immigration-law investigation prompts: Johor Chief Minister Onn Hafizs Ghazi urged Malaysia’s federal authorities to continue investigating whether the network school violated immigration laws, saying, “Any loopholes in immigration systems or acts of abuse must be addressed quickly, firmly, and without compromise.”
Srinivasan’s Statement: Denies Imminent Closure, Provides Details on Two Notices
On Friday, Srinivasan denied reports that the internet school was about to shut down, saying he received two notices: one requiring “changing the text on the signage,” and the other concerning a joint office space formed by combining two adjacent units—one side of the premises has a valid license, while the other does not.
He said there is a remediation period for both issues, and he will address them as soon as possible. “Beyond that, members are not affected.” Cointelegraph reached out to Srinivasan and the network school for comment regarding the matter, but had not received a response as of the time of publication.
FAQ
What are the specific reasons MBIP cited for revoking the internet school’s business license in Malaysia?
The Iskandar Princess City Council (MBIP) revoked NSO Malaysia Sdn Bhd’s business license, accusing it of violating permit conditions and premises-use regulations. In addition, Malaysia’s Digital Economy Corporation (MDEC) simultaneously announced that it will initiate the process to revoke NSO Malaysia’s Malaysia digital status.
What are the main contents of the Kazakhstan memorandum of understanding?
Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry Zhaslan Madiyev signed a memorandum of understanding with Balaji Srinivasan to establish the first internet school campus in Kazakhstan. Srinivasan said the new campus will speed up visa processing and simplify the resettlement process, with specific term details to be based on official announcements.
What is Malaysia digital status, and how would its revocation affect the internet school?
Malaysia digital status is an endorsement issued by MDEC to qualified tech and digital companies, providing qualifications such as tax incentives and freedom of ownership, as well as permission to hire local and foreign workers. If NSO Malaysia’s digital status is revoked, companies in the program would lose the related benefits listed above; the specific impact will follow MDEC’s official process.
