Accusations regarding the crypto wallet, MetaMask, and its parent company, ConsenSys, collecting taxes on cryptocurrency transactions have recently generated controversy. However, the company has denounced these claims by clarifying that they are based on inaccurate information resulting from a misreading of their terms of service.
The rumors first began to circulate following a series of tweets, which led to the controversy quickly gaining traction within the crypto community. Consequently, the issue made it onto the front page of r/cryptocurrency on Reddit, garnering more than 500 upvotes and around 600 comments at the time of publication.
The confusion arose due to a section within MetaMask’s terms of service that stated the company “reserved the right to withhold taxes where required.” Certain crypto community members interpreted this as an assertion that MetaMask was responsible for collecting their users’ income taxes. Screenshots of the contentious section were subsequently shared widely, with some suggesting that MetaMask was following the same path as Ledger, who recently surprised users with a controversial upgrade.
In an official statement, MetaMask addressed the situation, emphasizing that the tax section of their terms of service applies exclusively to products and paid plans offered. It does not include on-chain crypto transactions, and as such, the wallet does not collect taxes on these transactions. “Legal terminology can be complex, but it’s crucial to emphasize that this section does not apply to MetaMask or any other products that don’t involve sales tax,” the company clarified.
Many within the crypto community were quick to debunk the false narrative as well. For instance, one Twitter user, @printer_brrr, commented, “Everyone blindly tweeting about the MetaMask tax clause in TOS but not actually reading it. 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.”
In conclusion, while the viral spread of the rumors led to confusion and concern, MetaMask and its crypto community supporters have been swift to shed light on the truth. The tax clause is not relevant to on-chain crypto transactions, thus MetaMask does not collect taxes from its users.
Source: Cointelegraph
