ConsenSys Debunks MetaMask Withholding Customer’s Crypto for Tax Rumors

ConsenSys — the blockchain company behind MetaMask — has made it clear that its self-custody wallet does not collect taxes on crypto transactions, nor has it amended its terms of service to do so.

In an update, the company said the rumor was false and based on “inaccurate information” while acknowledging that “legal terminology can be complicated.”

ConsenSys

The clarification comes a day after several users raised concerns about MetaMask withholding clients’ crypto assets to meet tax obligations. Several of them highlighted one particular section, 4.3, of the MetaMask Terms of Service, which is readingWe reserve the right to withhold taxes as necessary.

Addressing Confusion, ConsenSys He said The tax section of the Terms of Service falls under the “Fees and Payment” section, and applies exclusively to paid products and plans offered by the Company and has nothing to do with on-chain crypto transactions.

Citing Infura as an example, ConsenSys said Metamask’s API tool has credit card developer subscriptions that include sales tax.

“The legal terminology can be complex, but it is important to stress that this section does not apply to MetaMask or any other products that do not include sales tax. We believe in transparency and accuracy when it comes to sharing information with our users.”

Widely rolling misinformation On Twitter he landed on the front page of r/cryptocurrency on Reddit, which translated into several other bizarre claims. Comparisons have also been drawn to Ledger’s new update – Ledger Recover – which has so far met massive resistance from the community.

privacy incidents

This is not the first incident ConsenSys has found itself in. While the Ethereum studio managed to debunk rumors about taxing crypto users, it received massive backlash for collecting their IP addresses and Ethereum wallet addresses at the end of last year.

ConsenSys admitted to collecting usernames, passwords, gender information and financial data, including asset holdings, bank account numbers and bank routing numbers, raising privacy concerns in November.

After this strong rejection, the company released several updates and clarifications on how it stores user data. In an attempt to repair the damage, it is open That the data collected via MetaMask and Infura has never been sold to third parties.