The Cayman Islands has seen a 70% year-on-year increase in Web3 foundation registrations, surpassing 1,300 by the end of 2024. In the first five months of 2025 alone, over 400 new foundations were registered. These foundations are becoming the preferred legal structure for DAOs, used for managing treasuries, holding intellectual property, and handling compliance matters. Notably, at least 17 foundations have treasury sizes exceeding $100 million. The OECD's Common Reporting Standard for Crypto-Asset Reporting Framework (CARF) is set to be implemented in 2026. Under this framework, the Cayman Islands will require crypto service providers, such as exchanges and custodians, to conduct due diligence and report activities. However, protocols and passive foundations that merely hold assets are expected to be exempt from mandatory reporting.