Cayman Islands Web3 Foundation Registrations Jump 70% Before 2026 OECD CARF Takes Effect

Foundation company registrations in the Cayman Islands rose 70% year-over-year, surpassing 1,300 by end-2024 and adding over 400 in the first five months of 2025, Cointelegraph reports. Cayman foundations have become the primary legal structure for DAOs to hold treasuries, manage IP, and handle compliance, with at least 17 foundations holding treasuries exceeding $100 million. The OECD CARF reporting framework takes effect in 2026 and will standardize automatic information exchange to address tax avoidance in crypto transactions. The Cayman Islands will require crypto service providers engaged in trading and custody to conduct due diligence and reporting, though protocol treasuries and passive foundations holding assets are expected to fall outside mandatory disclosure requirements.