Monday, May 29, 2023

ConsenSys Clears Up Crypto Tax Rumors MetaMask

ConsenSys, the company behind the famous Web3 MetaMask wallet, has denied (Monday) claims that it collects taxes for crypto investors. This follows FUD from social media and various rumors of Metamask collecting taxes on cryptocurrency transactions.

The company confirmed that it was following up on tweets containing misinformation about its terms and conditions. ConsenSys clarified that MetaMask does not tax cryptocurrency users and has never made any adjustments that would allow them to do so.

No crypto tax for MetaMask users

The clarification comes after a screenshot of MetaMask’s terms of service states in section 4.3 that the platform may withhold tax if necessary. Unsurprisingly, this catalysed an uproar in the crypto world over the weekend.

ConsenSys said the terms in question were not new and applied to its products subject to sales tax. He clarified that the above tax is not applicable to Metamask and the products are not subject to sales tax. Furthermore, ConsenSys said that it remains active in fighting against misinformation regarding its services and products.

However, MetaMask has previously addressed claims arising from the terms of ConsenSys. In November 2022, ConsenSys’ updated policy indicated that Infura, a tool for building applications that connect to the Ethereum blockchain, could collect more information from users, including IP addresses and Ethereum transactions.

Meanwhile, that brought misfortune to the users of what is supposed to be a decentralized wallet. The outcry forced the company to revise its privacy terms, and CEO Joseph Lubin clarified that Metamask only uses IP information for routing.

The popularity of MetaMask has also made the wallet a target for phishing attacks, hackers and scammers. For example, ConsenSys highlighted a data breach in April. The attack affected approximately 7,000 MetaMask users.

Crypto market today

Data from shows the cryptocurrency market in retreat mode, with most assets showing losses in less than 24 hours. Bitcoin and Ethereum declined by 0.19% and 0.55% (respectively) over the past day. Bitcoin was trading at $26,895.29 at press time, while Ethereum traded at $1,806.17.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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