A PERSPECTIVE ON LEGAL SETUPS FOR CRYPTO COMPANIES

Summary from the TLDR Crypto newsletter

Web3 foundations were set up to handle token issuance offshore to legally and financially separate token operations from the development company to minimize founder liability and avoid regulatory constraints in places like the U.S. or Singapore. Two main structures exist — the Panama Private Interest Foundation and Cayman Foundation Company — each designed to obscure or eliminate the founders as ultimate beneficial owners (UBOs), thus preventing direct tax and legal implications. However, this requires careful setup to avoid pitfalls, with independent governance often achievable only in the costlier Cayman model.