MetaMask is not holding customers' crypto for tax purposes.

2023-05-22

Summary: - ConsenSys, parent company of MetaMask, denies collecting taxes on crypto transactions - Rumors were based on a misreading of MetaMask's Terms of Service - Tax section of terms only refers to products and paid plans offered, not on-chain crypto transactions - Misinformation spread rapidly on social media, including on Reddit and Twitter - Some crypto community members quickly shut down the claims and clarified the section in question - MetaMask recently rolled out ETH purchases via PayPal to US users

Full article:

The parent company behind the crypto wallet MetaMask has debunked "inaccurate" rumors that it is collecting tax on crypto transactions.

ConsenSys, the company behind the crypto wallet MetaMask has hosed down rumors that it collects taxes from cryptocurrency users. 

The company informed its 270,000 Twitter followers on May 22, that the rumors were based on ”inaccurate information” drawn from a misreading of MetaMask’s Terms of Service.

The company clarified that the tax section of its terms of service exclusively referred to products and paid plans offered, and had nothing to do with on-chain crypto transactions.

"Legal terminology can be complex, but it's crucial to emphasize that this section does not apply to MetaMask or any other products that don't involve sales tax."

"MetaMask does not collect taxes on crypto transactions and we have not made any changes to our terms to do so."

Certain members of the crypto community cried foul play on May 21 after users noticed a section of MetaMask's terms of service that stated the company "reserved the right to withhold taxes where required,” with some believing this related to a users’ income taxes.

The misinformation rapidly surged up the ranks to make the front page of r/cryptocurrency on Reddit, where it has gathered more than 500 upvotes and 600 comments at the time of publication.

Reddit post concerning the MetaMask terms of service. Source: Reddit.

Screenshots of the highlighted section were also picked up by a number of large accounts on Twitter, some bearing emphatic claims that MetaMask were now treading the same path as Ledger which recently surprised users with a controversial upgrade.

MetaMask rolls out ETH purchases via PayPal to US users

However, not everyone bought into the gossip, with some crypto community quickly shutting down the claims: "Everyone blindly tweeting about the MetaMask tax clause in TOS but not actually reading it," wrote pseudonymous Twitter user @printer_brrr.

"If you buy a product from them, they can withhold taxes like sales tax for that product. Just like Amazon does when you buy from them," they added.

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Source: cointelegraph.com

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