Cayman Islands Web3 foundations jump 70% as CARF reporting rules arrive

Cayman Islands foundation company registrations increased by 70% year-on-year, reaching over 1,300 by the end of 2024, with over 400 new registrations in 2025. These structures are increasingly used by Web3 projects and Decentralized Autonomous Organizations (DAOs) to sign contracts, hold IP, and shield tokenholders from personal liability, especially following the 2024 Samuels v. Lido DAO ruling in the US which suggested unwrapped DAOs could be treated as general partnerships.

The Cayman structure offers a separate legal personality and tax neutrality, making it attractive compared to patchwork US regulations. This surge coincides with the Cayman Islands implementing the OECD's Crypto-Asset Reporting Framework (CARF) via new Tax Information Authority regulations effective January 1, 2026.

CARF imposes due diligence and reporting duties on "Reporting Crypto-Asset Service Providers." Legal experts suggest that pure treasury or ecosystem-steward foundations, which do not actively engage in exchange, brokerage, or custody services, should remain exempt from these full reporting requirements, allowing them to retain the benefits of Cayman's legal certainty and tax neutrality.

(Source：Cointelegraph)