ConsenSys, the developer of the popular web3 wallet MetaMask, has addressed rumors circulating on social media about the platform demanding taxes from cryptocurrency investors. The company strongly refuted these allegations, stating that they are false information and clarified that there have been no recent changes to MetaMask’s terms of service enabling tax collection.
???? 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.
— ConsenSys (@ConsenSys) May 21, 2023
The rumors originated from screenshots of MetaMask’s Terms of Use shared by a Twitter user named @jibi333. The screenshots specifically mentioned section 4.3, which discusses the platform’s right to withhold taxes when required.
Is Decentralization Dying?
Metamask will withhold your Taxes now! ???????????? pic.twitter.com/AdDGm4HSZ8— Jibi.eth ????♂️ (@jibi333) May 21, 2023
However, ConsenSys explained that these terms specifically pertain to products subject to sales tax and are not new. They made it clear that MetaMask does not impose taxes on cryptocurrency transactions and that it and other items not subject to sales tax are exempt from such tax collection.
ConsenSys emphasized its commitment to combating misinformation related to its services and products. The company reiterated its dedication to providing accurate and transparent information to MetaMask users. They reassured users of MetaMask’s trustworthiness and reiterated their mission to enhance the accessibility, usability, and extensibility of web3 through their various solutions.
This is not the first time that ConsenSys and MetaMask have faced public outcry over their terms of use. In November 2022, an updated policy from ConsenSys revealed that Infura, a platform connected to the Ethereum blockchain, had the potential to collect additional user data, including IP addresses and Ethereum transactions. This development led to dissatisfaction among users who viewed MetaMask as a decentralized wallet. As a result, ConsenSys had to revise its privacy policies, with CEO Joseph Lubin clarifying that MetaMask only utilizes IP information for routing purposes.
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