- ConsenSys Says Allegations About MetaMask Are False
- Its terms mention that MetaMask collects taxes on crypto that apply only to the given products and payment plans that the company offers, not MetaMask.
- There are also special products and plans that only include sales tax.
ConsenSys, the company behind the popular MetaMask crypto wallet, has denied claims that it collects taxes on crypto transactions.
Ethereum The blockchain software firm says the allegations are “false” and has not changed its terms of service to reflect this.
ConsenSys Says Allegations About MetaMask Are False
The uproar appears to stem from a portion of MetaMask’s terms of service that states that the wallet “retains”right to withhold necessary taxes,
However, in a twitter thread Clarifying the T&Cs, ConsenSys says that this clause only applies to specific products and payment plans that the company offers. This does not apply to Metamask.
📢 We are aware of Tweets circulating misinformation about ConsenSys Terms of Service.
Let’s make one thing clear first: MetaMask does not collect taxes on crypto transactions and we have not changed our terms to do so.
This claim is false.
— ConsenSys (@ConsenSys) May 21, 2023
,The tax section falls under the “Fees and Payments” section in our Terms of Service, and is specifically related to the products and payment plans offered by ConsenSys. For example, Infura has credit card developer subscriptions that include sales tax.‘, the statement said.
Adding that it believes in transparency and accuracy of information shared with users, the company said:
,The legal terminology can be complicated, but it is important to emphasize that this section does not apply to MetaMask or any other product that does not include sales tax.,
According to ConsenSys, no user assets are withheld on the grounds that the user has failed to pay taxes. The firm clarified that it is the responsibility of the user to comply with all applicable tax laws when it comes to client’s assets.
User privacy and security in user priority
Questions about MetaMask’s tax policies began to arise as some Twitter users expressed concerns that the wallet service was working with law enforcement.
It has been claimed that the wallet is helping tax authorities track down people who have not paid taxes on their crypto holdings.
Using the tool as the default Remote Procedure Call (RPC) in MetaMask will collect the user’s IP address as well as their Ethereum wallet address. However, using another RPC provider or Ethereum node in MetaMask does not mean no such data collection.