Today in crypto, Balaji Srinivasan’s Network School is looking to Kazakhstan after setbacks in Malaysia, Bitcoin climbed on hopes for US crypto legislation and a rotation out of AI stocks, and UK lawmakers launched an inquiry into banking access for crypto firms.
Balaji’s Network School turns to Kazakhstan amid Malaysia setback
Balaji Srinivasan’s Network School, a community of “digital nomads,” is eyeing a new campus in Kazakhstan after its Forest City campus had its business license revoked over alleged premises-use violations.
A memorandum of understanding was signed between Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry Zhaslan Madiyev and Srinivasan to establish the first Network School campus in Kazakhstan, according to a statement from the ministry.
The Kazakhstan agreement gives the Network School a potential new base after its Johor operation was ordered to cease operations effective Wednesday. Kazakhstan has been positioning itself as an emerging technology hub, including plans for Central Asia’s first “crypto city” in Alatau.
“Ironically, this whole drama with Balaji literally validated the network state thesis,” said Dragonfly Capital managing partner Haseeb Qureshi. “The whole idea of a network state is taking a dense group of talent and capital, and collectively negotiating with states. The Malaysia drama set up Balaji to negotiate better terms with another state to copy and paste the network there.“
Bitcoin rally gains steam as regulation hopes and AI slowdown boost crypto
Bitcoin briefly climbed back above $67,000 on Tuesday as optimism over US crypto regulation and expectations that cooling AI stocks could drive capital rotation into cryptocurrencies fueled a broad market recovery.
Investors were encouraged after US Treasury Secretary Scott Bessent indicated Congress is close to passing the CLARITY Act, legislation that would establish clearer oversight for the crypto industry. The prospect of a more defined regulatory framework helped lift Bitcoin and Ether while sending crypto-related stocks sharply higher, with exchanges and Bitcoin mining companies among the strongest performers.
Analysts also see a broader shift taking shape in financial markets. After dominating investor attention for much of the past two years, AI-related stocks have begun to lose momentum as concerns over high valuations and heavy infrastructure spending weigh on semiconductor shares. Some market observers believe that cooling enthusiasm for AI could prompt investors to reallocate capital toward cryptocurrencies, particularly if interest rate expectations stabilize.
UK parliamentary group probes banking barriers for crypto firms
A United Kingdom parliamentary group has launched an inquiry into whether crypto businesses and consumers face barriers to banking services, including account access and restrictions on crypto-related transactions.
On Monday, the Crypto and Digital Assets All-Party Parliamentary Group (APPG) said that it would examine how the restrictions affect investment, competition and economic growth. The group said it would assess whether the restrictions are proportionate.
Written submissions from banks, payment providers, crypto firms and other stakeholders are open until Aug. 31, after which the group plans to publish its findings and recommendations.
A January survey by the UK Cryptoasset Business Council (UKCBC) found that 10 crypto exchanges said banks blocked or delayed 40% of transactions to crypto platforms. According to the survey, 70% of respondents said the restrictions had reduced their willingness to invest, expand or hire in the UK.