MetaMask taxing crypto transactions? ConsenSys addresses rumor
- ConsenSys, the firm behind crypto wallet MetaMask, has clarified that it does not withhold customer’s crypto assets for taxes.
- The clarification comes a day after crypto users claimed that the firm was taxing crypto transactions.
ConsenSys, the blockchain firm that launched the popular crypto wallet MetaMask, has quashed the rumors surrounding MetaMask allegedly withholding customer’s crypto assets to meet tax obligations. The clarification comes a day after users on Twitter highlighted the terms of service regarding its flagship crypto wallet, claiming that the firm was collecting taxes from transactions.
MetaMask clarifies: Sales tax, not income tax
On 21 May, 2023, the crypto community on Twitter and Reddit started seeing various posts related to what some described as controversial terms of service from ConsenSys. “We reserve the right to withhold taxes where required,” an excerpt from the ToS read. Some users claimed that MetaMask could legally tax the crypto transactions made by customers.
ConsenSys took to Twitter to address the concerns expressed by the community.
? We are aware of tweets circulating with inaccurate information about ConsenSys' terms of service.
Let's clarify one thing upfront: 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 firm stated that the tweets alleging tax collection by MetaMask were based on false and inaccurate information.
“MetaMask does NOT collect taxes on crypto transactions and we have not made any changes to our terms to do so. Our commitment to combat misinformation about our products and services remains unwavering.”
According to the blockchain firm, the terms of service are not new and have been around for a while. Further, the terms of service in question only applied to products that are subject to sales tax. The tax section reportedly falls under the fees and payment section. Moreover, it exclusively pertains to products and paid plans that ConsenSys offers.
The firm clarified that the terms of service do not apply to MetaMask or any other products that involve sales tax. While its legal terminology may be complex, the firm is committed to transparency and accuracy regarding information that concerns users.