MetaMask New Terms Goes Viral As It Can Withhold Consumer Funds To Pay Taxes

Crypto wallet MetaMask’s new terms of conditions going viral as it confuses and surprised the community. If you don’t pay taxes, Metamask reserves the right to withhold it from your Metamask wallet for the tax departments.

MetaMask and ConsenSys now face backlash for withholding consumer funds for paying taxes, which is against decentralization and financial freedom.

MetaMask Updated Terms Face Backlash From Crypto Community

According to new terms of service by MetaMask developer ConsenSys, fees payable by consumers are “exclusive taxes unless otherwise noted. We reserve the right to withhold taxes where required.”

MetaMask users are required to identify and pay all taxes, as well as government fees and charges. ConsenSys made some important changes to the Terms of Use related to ConsenSys offerings, including MetaMask in April 2023.

1inch co-founder earlier raised questions on the new MetaMask’s terms stating that MetaMask holds the right to withhold taxes.

Explain me new @MetaMask ToS:
4.3 Taxes. Each party will be responsible, as required under applicable law, for identifying and paying all taxes and other governmental fees and charges. (…) We reserve the right to withhold taxes where required. https://t.co/XA5Mt174Uk

— Anton Bukov 🦇🔊 ⚖️ (@k06a) May 17, 2023

Also Read: Bitcoin Going To The Moon In 2023 Summer, Here’s What Elon Musk Says

Decentralization Is Dying

Decentralization is the primary principle of crypto. The crypto community took to Twitter to criticize the move by MetaMask, claiming it is against decentralization and financial freedom. Some even linked it to the Ledger controversy, saying the backdoor is for paying taxes and meeting other requirements as per the government’s rules and laws.

Metamask has not released any clarifications regarding the crypto community confusion. In December, ConsenSys faced backlash reading its data collection practices. It shared users’ transaction data alongside their IP addresses with its other product Infura. Metamask later updated the MetaMask wallet in response to the backlash.

Also Read: Ethereum Client Releases Pruning Update After Vitalik Buterin Updated The Roadmap

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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