• MetaMask, a crypto wallet by ConsenSys, cleared the rumors that it taxes crypto transactions.
• The terms of service only pertain to sales tax on products and paid plans offered by ConsenSys.
• ConsenSys clarified that their terms of service do not apply to crypto transactions.
MetaMask Clears Rumors of Taxing Crypto Transactions
ConsenSys, the firm behind popular crypto wallet MetaMask, has addressed claims that they were taxing users’ crypto transactions. They affirmed that their terms of service only applied to products and paid plans that are subject to sales tax, not income or other taxes related to cryptocurrency.
Background
On 21 May 2023, several posts surfaced online claiming that MetaMask had controversial terms of service which entitled them to withhold customer’s assets for taxes. This sparked confusion amongst the cryptocurrency community as many believed this was an additional tax on top of traditional income taxes associated with cryptocurrencies.
ConsenSys Clarity
ConsenSys took to Twitter in order to address these concerns and clarify what their terms of services actually meant. They stated emphatically “MetaMask does NOT collect taxes on crypto transactions and we have not made any changes to our terms to do so”. Furthermore they clarified that the tax section mentioned in their ToS exclusively pertained to products and paid plans offered by ConsenSys rather than any form of taxation associated with crypto transactions themselves.
No Changes Made
The blockchain firm also noted that the terms of service weren’t new but had been around for a while now without any changes being made regarding its taxation policies with regards to cryptocurrency trades or transfers.
Conclusion
In conclusion, ConsenSys has successfully put an end to speculation regarding the taxation policies associated with MetaMask as there is no additional charge when using their platform for trading or transferring cryptocurrencies other than those related directly to Consensys’ own products and services.