ConsenSys, the makers of the popular MetaMask browser-based crypto wallet, called out “tweets circulating with inaccurate information about ConsenSys’ terms of service,” asserting for the record that “MetaMask does not collect taxes on crypto transactions and we have not made any changes to our terms to do so.”
“The tax section in our terms of service falls under the ‘fees and payment’ section, and it exclusively pertains to products and paid plans offered by ConsenSys,” the company explained. “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 was responding to a number of Twitter posts that highlighted section 4.2 of the MetaMask terms of use, describing it as a change that will allow the company to withhold taxes. The claim quickly spread to r/CryptoCurrency on Reddit, where it has already amassed 450 upvotes and over 500 comments, to several crypto news sites, and to YouTube.
“DECENTRALIZATION IS DYING,” declared one viral tweet.
Many compared the rumored change to the recent controversy over Ledger’s new Ledger Recover feature for its hardware wallets, described by some as a “backdoor” to its ostensibly secure design.
“Why should Ledger have all the fun?” asked Kashif Raza, founder of Bitcoin education provider Bitinning. “Meta Mask joins the party now!”
Many within the crypto community were quick to push back on the claim.
“Everyone blindly tweeting about the MetaMask tax clause in TOS but not actually reading it,” admonished @printer_brrr, curator of the Toddler Art NFT collection. “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.”
The top-voted comment on Reddit also sought to dispel the rumor.
“This should be referring to sales taxes and not capital tax,” wrote pseudonymous user Mr. Literal under the username thinkingperson. “So when you buy anything online via your credit/debit card, different counries and states may have different sales tax regulation.”
“We believe in transparency and accuracy when it comes to sharing information with our users,” ConsenSys tweeted. “Our commitment to combat misinformation about our products and services remains unwavering.”
ConsenSys is one of 22 strategic investors in Decrypt.
Stay on top of crypto news, get daily updates in your inbox.
