ConsenSys, the company behind the crypto wallet MetaMask, has denied rumors that it collects taxes from cryptocurrency users. The company informed its 270,000 Twitter followers on May 22 that the rumors were based on ”inaccurate information” drawn from a misreading of MetaMask’s terms of service.
The company clarified that the tax section of its terms of service exclusively referred to products and paid plans offered, and had nothing to do with on-chain crypto transactions. “MetaMask does not collect taxes on crypto transactions and we have not made any changes to our terms to do so.”
Certain members of the crypto community cried foul play on May 21 after users noticed a section of MetaMask’s terms of service that stated the company “reserved the right to withhold taxes where required,” with some believing this related to a users’ income taxes. The misinformation rapidly surged up the ranks to make the front page of r/cryptocurrency on Reddit.
Screenshots of the highlighted section were also picked up by a number of large accounts on Twitter, some bearing emphatic claims that MetaMask was now treading the same path as Ledger, which recently surprised users with a controversial upgrade.
However, not everyone bought into the gossip, with some crypto community quickly shutting down the claims. “Everyone blindly tweeting about the MetaMask tax clause in TOS but not actually reading it,” wrote pseudonymous Twitter user 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,” they added.
