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.
We are aware of tweets circulating with inaccurate details about ConsenSys’ terms of service.
Let’s get one thing clear up front: MetaMask does NOT collect taxes on crypto transactions and we’ve not made any changes to our terms and conditions to achieve this.
This claim is fake.
— ConsenSys (@ConsenSys) May 21, 2023
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.
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.
If you have not paid your taxes, Meta Mask will hold your cryptocurrencies.
Why would Ledger rejoice?
Meta Mask joins the party!
— Kashif Raza (@simplykashif) May 21, 2023
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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