MetaMask Will Not Withhold Your Crypto for Taxes

ConsenSys, the creators of the well-known MetaMask web-based cryptocurrency wallet, responded to the presence of “tweets spreading incorrect details about ConsenSys’ terms of service.” They clarified that “MetaMask does not gather taxes on cryptocurrency transactions, and we have not implemented any alterations to our terms to enable such collection.”

MetaMask Will Not Withhold Your Crypto for Taxes

ConsenSys, the company behind the popular MetaMask browser-based cryptocurrency wallet, denounced the circulation of misleading tweets regarding their terms of service. They clarified that MetaMask does not collect taxes on crypto transactions and reaffirmed that no changes have been made to their terms in this regard.

The company explained that the tax section in their terms of service specifically relates to fees and payments for ConsenSys’ products and paid plans. They stressed that this section does not apply to MetaMask or any other products that are not subject to sales tax.

This response was prompted by Twitter posts drawing attention to section 4.2 of the MetaMask terms of use, which were erroneously interpreted as a modification allowing the company to withhold taxes. The claim gained traction on Reddit’s r/CryptoCurrency, accumulating significant engagement, and spread to various crypto news sites and YouTube.

A tweet declaring “DECENTRALIZATION IS DYING” went viral, while others drew comparisons to the controversy surrounding Ledger’s Ledger Recover feature for its hardware wallets, which some criticized as a “backdoor” to its supposedly secure design.

Kashif Raza, the founder of Bitcoin education provider Bitinning, quipped, “Why should Ledger have all the fun? MetaMask joins the party now!”

However, many members of the crypto community promptly refuted the claim. @printer_brrr, curator of the Toddler Art NFT collection, admonished those who tweeted about the MetaMask tax clause without thoroughly reading it, explaining that it pertains to sales tax for purchased products, similar to how Amazon handles sales tax.

The top-rated comment on Reddit also aimed to dispel the rumor, clarifying that the clause likely refers to sales taxes rather than capital taxes, and that different regions may have varying sales tax regulations for online purchases made with credit/debit cards.

ConsenSys reiterated their commitment to transparency and accuracy in sharing information with users, emphasizing their unwavering dedication to combatting misinformation about their products and services.

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