The crypto-wallet developer MetaMask — ConsenSys — in response to community criticism said that the app does not levy taxes on digital asset transactions.
? 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.
— ConsenSys (@ConsenSys) May 21, 2023
“We are aware of tweets spreading inaccurate information about ConsenSys’ terms of service. Let us clarify one thing in advance: MetaMask does not levy taxes on cryptocurrency transactions, and we have not made any changes to our terms of agreement,” the company said.
Prior to the official statement, users noticed a document saying that the company has the right “to withhold taxes if necessary”.
? BREAKING ?
METAMASK NEW UPDATE IN TERMS AND POLICY WILL WITHHOLD YOUR TAXES. DECENTRALIZATION IS DYING pic.twitter.com/wqpwAd2BQh
— Ash Crypto (@Ashcryptoreal) May 21, 2023
This situation drew a wave of negative sentiment toward the crypto wallet. Some even questioned the decentralization of the app. But there were users who rushed to debunk the false information.
Everyone blindly tweeting about the MetaMask tax clause in TOS but not actually reading it. The tax section is in their “fees and payment” section, talking about products and paid plans they offer. if you buy a product from them, they can withhold taxes like sales tax for that… pic.twitter.com/0ay9UCJHdh
— moneyprintergobrrr.eth (@printer_brrr) May 21, 2023
“Everyone blindly tweeting about the MetaMask tax clause in the terms of the agreement, but not actually reading it,” — wrote one of the wallet’s defenders.
The developers explained that this clause does not apply to transactions involving digital assets through MetaMask and affects only “ConsenSys products and paid services”.
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.
We believe in transparency and accuracy when it comes to sharing information with our users.
— ConsenSys (@ConsenSys) May 21, 2023
“Legal terminology can be complex, but it’s important to emphasize that this section does not apply to MetaMask or any other products that do not involve sales tax. We believe in transparency and accuracy when it comes to sharing information with our users,” the company representatives added.
In April, MetaMask described an unknown exploit that led to losses of more than $10.5 million among users. According to the investigation, the issue affected all wallets, including hardware wallets or those generated for Ethereum pre-sale.