No, MetaMask Will Not Withhold Your Crypto for Taxes

ConsenSys, the makers of the popular MetaMask browser-based crypto wallet, called out «tweets circulating with inaccurate information about ConsenSys’ terms of service,» asserting for the record that «MetaMask does NOT collect taxes on crypto transactions and we have not made any changes to our terms to do so.»

«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,» the company explained. «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.»

📢 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 company was responding to a number of Twitter posts that highlighted section 4.2 of the MetaMask terms of use, 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 amassed 450 upvotes and over 500 comments, to several crypto news sites, and to YouTube.

«DECENTRALIZATION IS DYING,» declared one viral tweet.

🚨 BREAKING 🚨

METAMASK NEW UPDATE IN TERMS AND POLICY WILL WITHHOLD YOUR TAXES. DECENTRALIZATION IS DYING pic.twitter.com/wqpwAd2BQh

— Ash Crypto (@Ashcryptoreal) May 21, 2023

Many compared the development 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.

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