Cayman Islands: New Legal Hub for Decentralized Autonomous Organizations (DAOs)

The Cayman Islands are experiencing a surge in foundation company registrations, leading to a boom in DAO structures. By the end of 2024, over 1,300 foundation companies were registered, making it a prime destination for DAOs and Web3 projects seeking legal clarity and robust compliance frameworks. 2026’s implementation of the OECD Common Reporting Standard (CRS) framework is driving this growth as it introduces new tax transparency regulations, but notably excludes passive foundations from mandatory reporting. This shift has solidified Cayman’s status in blockchain governance and taxation.