MetaMask Developer ConsenSys Clears Air On Terms About Withholding Tax

MetaMask-developer ConsenSys on Monday clarifies a recent confusion in the crypto community regarding withholding consumer funds to pay taxes. ConsenSys said “MetaMask does not collect taxes on crypto transactions” and the tax section does not apply to crypto wallet MetaMask and any other products offered without sales tax.

MetaMask Will Not Withhold Crypto Assets For Taxes

ConsenSys took to Twitter on May 21 after a clause in terms of service went viral as it confused and surprised the crypto community whether MetaMask can withhold consumer funds to pay taxes.

The company clarified that MetaMask does not collect any taxes on crypto transactions. Moreover, it has not made any new changes regarding taxes in its new terms of service.

“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.”

The terms referenced are for products and services that are subjected to sales tax. However, the tax terms does not apply to MetaMask or other products that don’t involve sales tax.

The tax terms come under the “fees and payment” section and concern only products and paid plans offered by ConsenSys. It cites Infura product as an example, which has credit card developer subscriptions and includes sales tax.

ConsenSys argues its goal is to expand Web3 adoption by making it easy to use, access, and build through its suite of products. The company remains committed to the crypto industry.

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Crypto Twitter Reactions To MetaMask Terms of Service

ConsenSys made some important changes to the Terms of Use related to ConsenSys offerings, including MetaMask in April 2023. However, the tax terms were not included in the recent changes.

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.

Accointing by Glassnode stated that the tax is not applicable to customers’ capital gain tax, but the taxes on the sale of services between users and MetaMask, usually paid by the service that collects the tax.

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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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