MetaMask doesn’t collect taxes on crypto, ConsenSys says

ConsenSys says allegations about MetaMask as false
The section in its terms referred to in allegations that MetaMask collects taxes on crypto only applies to given products and paid plans that the company offers, not MetaMask.
The particular products and plans are also those that involve sales tax only.

ConsenSys, the company behind the popular MetaMask crypto wallet, has denied claims that it collects taxes on crypto transactions. 

The Ethereum blockchain software firm says that the allegations are “false” and that it has not made any changes to its terms of service to reflect this.

ConsenSys says allegations about MetaMask are false

The uproar appears to have stemmed from a section of MetaMask’s terms of service that states that the wallet retains “the right to withhold taxes as necessary.”

However, in a Twitter thread clarifying the T&Cs, ConsenSys says that the section only applies to specific products and paid plans that the company offers. It does not apply to MetaMask.

📢 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

“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,” the statement noted.

Adding that it believed in transparency and accuracy of information shared with users, the company added:

“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.”

According to ConsenSys, no user assets are withheld on the premise that the user failed to pay taxes. Compliance with all applicable tax laws when it comes to customer’s assets is that user’s responsibility, the firm clarified.

User privacy and secutiry among users’ priority

Questions about MetaMask’s tax policies began to swirl as some Twitter users voiced concerns that the wallet service was working with law enforcement. 

The claims have been that the wallet is helping tax authorities to track down those deemed not to have paid taxes on their crypto holdings.

In 2022, ConsenSys came under criticism over its collection of the IP addresses and other details of users’ personal data. But pointing to its privacy policy, ConsenSys said the issue only affected those using its API-based tool Infura.

Using the tool as the default remote procedure call (RPC) in MetaMask would see it collect the user’s IP address as well as their Ethereum wallet address. However, using another RPC provider or Ethereum node in MetaMask meant no such data collection.