Will MetaMask Withhold Taxes On Crypto Transactions? ConsenSys Clarifies The Confusion

Recently, the crypto community debated regarding MetaMask’s ability withholding taxes from consumer involved in crypto transactions per a clause in their service terms. MetaMask developer ConsenSys came to Twitter to clear the air stating, “We are aware of tweets circulating with inaccurate information about ConsenSys’ terms of service. Let’s clarify one thing upfront: MetaMask does NOT collect taxes on crypto transactions, and we have not made any changes to our terms to do so. This claim is false.”

https://twitter.com/ConsenSys/status/1660353688446050304

Due to misreading and misinterpreting Metamask’s terms of service, the crypto community saw rumors regarding tax collections by the platform. However, the developer team hosed down these lies and inaccurate details by clarifying that the tax terms apply to their products subject to sales taxes.

ConsenSys Take On Rumors

ConsenSys tweeted and clarified that their goal is to make web3 easy to use and access and develop a product suite. So, the terms referenced in the rumors aren’t a new addition. Instead, these conditions apply to products under the sales tax.

Further, the taxation section in their policies is under the “Fees and Payment” section. This section is exclusive to ConsenSys products and paid plans. They said that although the legal things are complex to explain in detail, the specific rumors do not apply to MetaMask and other products not under sales tax criteria.

The MetaMask Rumor Saga: How it Escalated?

Some users noticed MetaMasks’ terms of service sections and cried foul regarding the tax section after misinterpreting it on May 21. The section in question stated, “The Company reserves the right to withhold taxes wherever required.”

It sparked a debate on Twitter about MetaMask withholding taxes on crypto transactions from consumer funds without clearing it beforehand. Many believed this statement pertained to a user’s income taxes, and the inaccurate information surged in rankings on Reddit.

Source: Reddit (via Cointelegrap)

The highlighted section got viral on the internet, where several Twitter accounts compared MetaMask with Ledger, another wallet in hot water. For the unaware, Ledger announced a recent upgrade that became quite a controversy. Moreover, the crypto community voiced their criticism and claimed it was a move against decentralization and financial freedom.

Despite the rage among some users, not everyone bought the gossip as authentic facts. Many shut down these claims and stated that people are making blind tweets without actually understanding the tax clause.

Twitter Reactions After Clarification

After ConsenSys’ Twitter clarification regarding the misinformation, many users thanked the team for the clarity. However, some have also sympathized with the company, saying that clarity wasn’t needed.

Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.