The firm behind the popular Web3 wallet MetaMask has confirmed that it does not collect taxes from users.
On May 22, ConsenSys refuted claims and social media FUD that MetaMask was collecting taxes.
The firm said it was aware of tweets circulating with inaccurate information about its terms of service, adding:
“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 clarification stems from a circulated screenshot of MetaMask terms and conditions. Under section ‘4.3 Taxes,’ it stated, “We reserve the right to withhold taxes where required.”
Naturally, this sparked an uproar in the crypto community over the weekend.
ConsenSys said that the terms referenced were not new. “They apply to our products that are subject to sales tax,” it added.
“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.”
Furthermore, it stated that the tax section does not apply to MetaMask or any products that do not involve sales tax.
ConsenSys said it remained committed to “combat misinformation about our products and services.”
It is not the first time MetaMask has been in hot water over ConsenSys terms and conditions.
In November, a quietly updated ConsenSys privacy policy revealed that Infura would collect more data, including IP addresses from users and Ethereum transactions. Infura is a tooling suite for the creation of applications that connect to the Ethereum network.
Naturally, this sparked outrage over what is touted to be a decentralized crypto wallet. The firm was forced to update its privacy policy in response to the public backlash. ConsenSys CEO Joseph Lubin explained that MetaMask only uses IP data for routing.
In April, ConsenSys reported a data breach that affected around 7,000 MetaMask users. With a user base in excess of 20 million, MetaMask has become a prime target for scammers, hackers, and phishing attacks.
Crypto Market Outlook
Crypto markets are in retreat during the Monday morning Asian trading session. As a result, total capitalization has decreased by 1.4% to $1.16 trillion.
Bitcoin and Ethereum are down marginally on the day, but the overall outlook is still sideways.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
Source: https://beincrypto.com/consensys-refutes-metamask-withholding-crypto-taxes/