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Is MetaMask withholding customers’ crypto for taxes? No, it’s not.

ConsenSys, the corporate behind the MetaMask crypto wallet, has dispelled rumors that it collects taxes from cryptocurrency users.

The company informed its 270,000 Twitter followers on May 22 that the rumors are based on “inaccurate information” derived from a misreading of MetaMask data. Terms of Service.

The company clarified that the tax portion of its terms of service only applies to the products and paid plans it offers and has nothing to do with on-chain crypto transactions.

“The legal terminology may be complex, however it’s essential to emphasize that this section doesn’t apply to MetaMask or another products that don’t include sales tax.”

“MetaMask doesn’t collect taxes on crypto transactions and we’ve not made any changes to our terms and conditions to achieve this.”

Some members of the crypto community cried on May 21 after users spotted a piece of MetaMask’s terms of service which stated that the corporate “reserves the precise to withhold taxes as needed” and a few consider it has to do with users’ income taxes .

The misinformation quickly rose through the ranks to be on the front page of r/cryptocurrency on Reddit, where it garnered over 500 upvotes and 600 comments on the time of publication.

Reddit post regarding the MetaMask Terms of Service. Source: Reddit.

Screenshots of the highlighted section were also collected by various major Twitter accounts, a few of which explicitly claimed that MetaMask was now on the identical path as Ledger, which recently surprised users with a controversial update.

Related: MetaMask provides ETH purchases via PayPal to US users

However, not everyone believed the rumors, and parts of the crypto community quickly dismissed the claims: “Everyone blindly tweets in regards to the MetaMask tax clause within the TOS but doesn’t really read it,” wrote a pseudonymous Twitter user @printer_brrr.

“If you purchase a product from them, they might withhold taxes, reminiscent of the sales tax on that product. Just like Amazon does if you buy from them,” they added.

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