ConsenSys — the blockchain firm behind MetaMask — clarified that its self-custodial wallet does not collect taxes on crypto transactions, nor has it modified its terms of service to do so.
In an update, the company said the rumor is false and was based on “misinformation,” while acknowledging that “the legal terminology can be complex.”
The clarification comes a day after several users raised concerns about MetaMask customers’ crypto assets being frozen in order to meet tax obligations. Several of them highlighted a particular clause, 4.3, of MetaMask’s terms of service, which read: “We reserve the right to withhold taxes as necessary.”
Addressing the Confusion, ConsenSys Said The tax section in its terms of service falls under the “fees and payments” section, and applies exclusively to products and payment plans offered by the company and has nothing to do with on-chain crypto transactions .
Citing the example of Infura, ConsenSys said that Metamask’s application programming interface (API) tool has a credit card developer subscription that includes sales tax.
“The legal terminology can be complicated, but it is important to emphasize that this section does not apply to MetaMask or any other product that does not include sales tax. When it comes to sharing information with our users, we We believe in transparency and accuracy.
widely circulated fake news Twitter even reached the front page of r/cryptocurrency on Reddit, which translated a number of other outlandish claims. Comparisons were also made to Ledger’s new update – Ledger Recover – which has so far faced tremendous resistance from the community.
This isn’t the first crash ConsenSys has found itself in. While Ethereum Studio did manage to quash rumors about raking in taxes from crypto users, it received significant backlash late last year for collecting their IP addresses and Ethereum wallet addresses. ,
ConsenSys admitted to collecting financial data including usernames, passwords, gender information and asset holdings, bank account numbers and bank routing numbers, thus raising privacy concerns in November.
After intense protests, the company issued several updates and clarifications on how it stores user data. To repair the damage, it was further revealed that the data collected through Metamask and Infura was never sold to third parties.
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