The Cayman Islands has reported a significant 70% year-on-year increase in the establishment of new Web3 foundations, according to recent industry data. This notable growth is primarily attributed to decentralized autonomous organizations (DAOs) and other blockchain-based entities seeking formal legal structures to enhance their operational legitimacy and governance frameworks.
Legal experts specializing in digital asset entities indicate that this surge coincides with the approaching implementation of the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD). The new international standard for the automatic exchange of tax information on crypto-assets is scheduled to take effect in 2026.
Professionals within the sector suggest that entities are proactively establishing foundations in jurisdictions like the Cayman Islands to ensure compliance with the forthcoming transparency requirements. These legal wrappers provide a recognized corporate structure that can facilitate adherence to complex international regulatory and tax reporting obligations.
The trend underscores a broader movement within the cryptocurrency industry towards institutionalization and regulatory alignment. As global standards for digital asset reporting solidify, strategic legal structuring is becoming a critical consideration for projects aiming for long-term sustainability and cross-border operation.
