Key Points:
ConsenSys, the parent company of the MetaMask wallet app, has stated that it does not collect taxes from crypto users.
MetaMask confirms that they only collect sales tax on some paid services on the platform.
Previously, the community was worried about the announcement that the company would withhold taxes and other fees, penalties, interest, and fees from the government.
According to an official announcement yesterday, ConsenSys, the MetaMask wallet application’s parent company, does not collect taxes from crypto users.
“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.”
The largest cryptocurrency wallet platform on the market clearly states that the tax portion of the “tax and payment” scope is only related to products and paid plans offered by ConsenSys – such as Ethereum API Infura subscriptions paid via credit. People may have misunderstood some legal terms, but it should be emphasized that this does not apply to MetaMask and other products that do not collect sales tax.
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
Previously, the crypto community had been whispering about the terms of service updated by MetaMask and ConsenSys in April 2023. In it, section 4.3 notices that the company will withhold taxes and other fees, penalties, interest, and fees to the government. The above statement quickly appeared on Reddit and received mixed opinions, most of which were critical.
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
Rumors even went as far as to think MetaMask would freeze user funds because of tax issues. However, nothing in the platform terms of service reflects or in any code that allows the project to do this.
Although MetaMask users do not need to pay consumption tax, crypto investors are still required to report and pay tax on profits in most jurisdictions worldwide. MetaMask, once admitted, users should still pay taxes in full.
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