ConsenSys, the company behind the MetaMask cryptocurrency wallet, has been covering up rumors that it collects taxes from cryptocurrency users.
The company notified its 270,000 Twitter followers on May 22 that the rumor was based on “inaccurate information” derived from a misreading of MetaMask. Terms of Service.
We are aware of tweets circulating with inaccurate information about ConsenSys’ terms of service.
Let’s be clear up front: 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 company clarified that the tax section of its Terms of Service refers exclusively to the paid products and plans offered, and has nothing to do with on-chain crypto transactions.
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.
MetaMask does not collect taxes on crypto transactions and we have not made any changes to our terms to do so.
Some members of the crypto community cried out on May 21 after users noticed a section of MetaMask’s Terms of Service stating that the company “reserves the right to withhold taxes where applicable,” with some believing this relates to users’ income taxes.
The misinformation quickly escalated to the front page of r/cryptocurrency on Reddit, amassing over 500 upvotes and 600 comments at the time of publication.
A number of large Twitter accounts also took screenshots of the token section, some with emphatic claims that MetaMask was now going down the same path as Ledger, which recently surprised users with a controversial upgrade.
If you haven’t paid taxes, Meta Mask will keep your cryptocurrency.
Why should Ledger have all the fun?
Meta Mask is joining the party now!
– Kashif Reda (@simplykashif) May 21, 2023
Related: MetaMask is rolling out ETH purchases via PayPal to US users
However, not everyone bought the gossip, as some of the crypto community quickly shut down the claims. “Everyone blindly tweets about the MetaMask tax provision in the Terms of Service but never actually reads it,” books Twitter user with the pseudonym printer_brrr.
“If you buy a product from them, they can withhold taxes like sales tax for that product. Just like Amazon does when you buy from them,” they added.
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