No, MetaMask will not hold your crypto for taxes

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ConsenSys, makers of the popular browser-based crypto wallet MetaMask, called out “tweets circulating with inaccurate information about ConsenSys’ terms of service,” saying for the record that “MetaMask does not collect crypto transaction fees and we have made no changes to our terms to do so.”

“The tax section of our Terms of Service falls under the ‘Fees and Payment’ section and pertains exclusively to paid products and plans offered by ConsenSys,” the company explained. “Legal terminology can be complex, but it’s important to emphasize that this section does not apply to MetaMask or any other product that does not involve sales tax.”

The company was responding to a number of Twitter posts highlighting Section 4.2 of the MetaMask Terms of Service, describing it as a change that will allow the company to withhold taxes. The claim quickly spread to r/CryptoCurrency on Reddit, where it has already garnered 450 upvotes and over 500 comments, several crypto news sites, and YouTube.

“DECENTRALIZATION IS DYING,” said one viral tweet.

Many compared the supposed change to the recent controversy over Ledger’s new Ledger Recover feature for its hardware wallets, described by some as a “backdoor” to its ostensibly secure design.

“Why should Ledger have fun? asked Kashif Raza, founder of Bitcoin education provider Bitinning. “Meta Mask joins the party now!”

Many in the crypto community were quick to push back against the claim.

“Everyone blindly tweets about the MetaMask tax clause in TOS but doesn’t actually read it,” warned @printer_brrr, curator of the Toddler Art NFT collection. “If you buy a product from them, they may withhold taxes like sales tax for that product. Just like Amazon does when you buy from them.”

The top-voted comment on Reddit also sought to dispel the rumor.

The story continues

“This should refer to sales taxes and not capital tax,” pseudonymous user Mr. Literal wrote under the username thinkingperson. “So when you buy something online using your credit/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 fighting misinformation about our products and services remains unwavering.”

ConsenSys is one of 22 strategic investors in Decrypt.

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