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.
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.
ConsenSys has clarified that the particular products and plans are also those that involve sales tax only. It added that no user assets are withheld on the premise that the user failed to pay taxes. Compliance with all applicable tax laws is the responsibility of the user.
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.
ConsenSys emphasizes the importance of transparency and accuracy of information shared with users. It also emphasizes that legal terminology can be complex, but it’s crucial to emphasize that the tax section in its terms of service does not apply to MetaMask or any other products that don’t involve sales tax.