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MetaMask Confirms it Will Not Withhold Your Crypto for Taxes

The company called out tweets circulating false information about its terms of service, saying such claims are false and inaccurate.

Over the weekend, users of the popular MetaMask browser-based crypto wallet have been posting on Twitter about how MetaMask allegedly collects taxes on crypto transactions – resulting in an official callout post debunking the claim.

ConsenSys, the makers of MetaMask, wrote that it was aware of “tweets circulating with inaccurate information about ConsenSys’ terms of service,” asserting that “MetaMask does not collect taxes on crypto transactions and we have not made any changes to our terms to do so.”

ConsenSys explains that the tax section in their terms of service falls under the ‘fees and payment’ section – “which exclusively pertains to products and paid plans offered by ConsenSys.” 

While “legal terminology can be complex,” says ConsenSys, it is important to emphasize that the aforementioned section does not apply to MetaMask, nor any other products from ConsenSys that does not involve sales tax.

The Twitter posts in question pointed out section 4.3 of MetaMask’s terms of use, where users have claimed as a change that will allow ConsenSys to withhold taxes. The claim quickly soon found its way to Reddit on r/CryptoCurrency, where the post has received more than 500  upvotes, several crypto news sites, and has even picked up the attention of Crypto YouTubers.

“METAMASK NEW UPDATE IN TERMS AND POLICY WILL WITHHOLD YOUR TAXES. DECENTRALIZATION IS DYING,” wrote one viral tweet, containing a screenshot of the so-called updated terms of service.

“Everyone blindly tweeting about the MetaMask tax clause in TOS but not actually reading it,” said @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.”

Meanwhile on Reddit, others were also working hard to dispel rumours and misinterpretations.

Pseudonymous user Mr. Literal under the username thinkingperson wrote “this should be referring to sales taxes and not capital tax,” adding that when anyone makes an online purchase via credit or debit card, different countries and states may have different sales tax regulations.

“We believe in transparency and accuracy when it comes to sharing information with our users,” ConsenSys tweeted. “Our commitment to combat misinformation about our products and services remains unwavering.”

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