ConsenSys, the company behind the popular crypto wallet MetaMask, has refuted claims that it collects taxes on crypto transactions.
False Accusations
The Ethereum blockchain software firm clarifies that the allegations are “false” and that it has not made any changes to its terms of service to reflect this. The uproar appears to have stemmed from a section of MetaMask’s terms of service that states that the wallet retains “the right to withhold taxes as necessary.”
Clarification of Terms of Service
In a Twitter thread clarifying the T&Cs, ConsenSys says that the section only applies to specific products and paid plans that the company offers. It does not apply to MetaMask. “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. For example, Infura has credit card developer subscriptions which include sales tax,” the statement noted.
No Withholding of User Assets
According to ConsenSys, no user assets are withheld on the premise that the user failed to pay taxes. Compliance with all applicable tax laws when it comes to customer’s assets is that user’s responsibility, the firm clarified.
Questions about Privacy and Security
Questions about MetaMask’s tax policies began to swirl as some Twitter users voiced concerns that the wallet service was working with law enforcement. The claims have been that the wallet is helping tax authorities to track down those deemed not to have paid taxes on their crypto holdings.
In 2022, ConsenSys came under criticism over its collection of the IP addresses and other details of users’ personal data. But pointing to its privacy policy, ConsenSys said the issue only affected those using its API-based tool Infura. Using the tool as the default remote procedure call (RPC) in MetaMask would see it collect the user’s IP address as well as their Ethereum wallet address. However, using another RPC provider or Ethereum node in MetaMask meant no such data collection.
