ConsenSys, the company behind MetaMask, a widely-used cryptocurrency wallet, has dismissed speculation suggesting that it collects taxes from digitalย currency users.ย
On May 22, the company took to Twitter to inform its 270,000 followers that these speculation were unfounded and arose from a misunderstanding of Metamaskโs terms of service.
๐ข We are aware of tweets circulating with inaccurate information about ConsenSysโ terms of service.
Letโs clarify one thing upfront: MetaMask does NOT collect taxes on cryptocurrency transactions and we have not made any changes to our terms to do so.
This claim is false.
โ ConsenSys (@ConsenSys) May 21, 2023
MetaMask Debunks Tax Collection Rumors: Clarifies Terms of Service Misinterpretation
The company madeย itย clearย that the tax section in its terms of service was inย particularย related to its products and paid plans and had no connection to on-chain cryptocurrency transactions.
โ Despiteย theย factย that legal terminology can be complex, itโs criticalย toย say that this section does not apply to MetaMask or any other products that doย not involve sales tax.โ
โMetaMask does not collect taxes on cryptocurrency transactions, and there have been no changes to our terms to enable such collection.โ
If you havenโt paid taxes, Meta Mask will hold your crypto.
Why should Ledger have all the fun?
Meta Mask joins the party now!
๐๐๐ pic.twitter.com/RIBoPzmiei
โ Kashif Raza (@simplykashif) May 21, 2023
Several cryptocurrency community members raised concerns on May 21 when they noticed a section in Metamaskโs terms of service mentioning the companyโs right to withhold taxes as required. Nonetheless, as some had speculated, this provision was not related to usersโ income taxes.
The misinformation gained wholeย lotย of attention and reached the front page of r/ digitalย currency on Reddit, amassing over 500 upvotes and 600 comments. Nonetheless, skeptical individuals within the cryptocurrency community promptly debunked the claims.ย
1 pseudonymous Twitter user, printer_brrr, criticized the lack of thorough reading before spreading the information, stating, โEveryone is blindly tweeting about the MetaMask tax clause in TOS without essentially reading it.โ They further clarified, โIf you buy a product from MetaMask, they may withhold taxes, such as sales tax, for that specific product, similar to how Amazon handles purchases.โ
MetaMask: Trending and Versatile Cryptocurrency Wallet with Security Considerations
MetaMask hasย evolved one of the most trending cryptocurrency wallets for storing digital assets. It operates on the Ethereumย (ETH) network but supports other networks such as BSCchain and Polygon.
Users find MetaMask easy to use, thanks to its mobile application and simple browser plugin. Itย allows users to send digitalย currencies to any wallet or exchange and add custom cryptoย tokens. Althoughย while MetaMask provides a secure digitalย currency storage option, it has drawbacks. Being a hot wallet connected to the internet, it is more susceptible to attacks and theft.
The seed phrase is another critical aspect to consider. If users accidentally disclose their seed phrase, malicious actors can easily steal their assets. Nonetheless, this is not a flaw with the wallet itself; users must keep their seed phrase safe. It isย crucialย to remember that the only way to recover an account on MetaMask is through the seed phrase. Losing the seed phrase makes it impossible to retrieve the funds. Thisย isย why, it isย importantย to never share the seed phrase with anyone.
Regardlessย of the availability of numerous blockchainย tech wallets, MetaMask has resurfaced as a top choice between users, surpassing plentyย of alternative options.
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