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Malaysia is reportedly shutting down Balaji Srinivasan’s Network School

WHY IT MATTERS

The shutdown is a concrete setback for the 'network state' concept that some in tech have promoted as a new governance model. It demonstrates the regulatory friction that arises when attempting to establish semi-autonomous tech communities within existing nation-states, and the pivot to Kazakhstan suggests the project will keep seeking permissive jurisdictions rather than resolving licensing requirements.

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The three things worth knowing

01

Malaysian authorities ordered the Network School, operating from an abandoned hotel, to shut down due to licensing issues.

02

Srinivasan, who reportedly renounced his US citizenship in 2023, has already announced a new campus agreement in Kazakhstan.

03

Attendees had complained about poor living conditions including moldy rooms and a lack of women and nightlife, raising questions about the community's viability.

THE CLUSTER

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