Actually, no, MetaMask is not charging tax. ConsenSys, the parent company behind MetaMask, has clarified that the rumors about collecting taxes on crypto transactions are false. In fact, the rumors originated from a misinterpretation of MetaMask’s terms of service. Ultimately, the misinformation led to inaccurate claims about MetaMask collecting taxes on crypto transactions. Let’s dive in!
ConsenSys Sets the Record Straight: No, MetaMask Does Not Tax Users
On May 22, ConsenSys, the company behind the popular crypto wallet MetaMask, took to Twitter to debunk tax rumors. Significantly, the rumors suggest that it collects taxes from cryptocurrency users. ConsenSys informed its 270,000 Twitter followers that these rumors were based on “inaccurate information” resulting from misreading MetaMask’s terms of service.
The company clarified that the tax section in its terms of service only applies to products and paid plans offered by MetaMask. Markedly, it has nothing to do with on-chain crypto transactions. They made it clear that MetaMask is solely focused on providing a smooth and secure experience for cryptocurrency users, without any involvement in the taxation of crypto transactions.
Setting the Record Straight
On May 21, some members of the crypto community expressed concern about MetaMask tax. This happened when they came across a section in MetaMask’s terms of service. Significantly, this section mentioned the company’s right to withhold taxes if necessary. Eventually, this led to speculations that it could be related to users’ income taxes.
The misinformation quickly spread. Notably, it gained attention on platforms like Reddit’s r/cryptocurrency and Twitter, with some high-profile community members sharing screenshots of the highlighted section. Some even drew comparisons to Ledger’s recent controversial upgrade. However, the rumors are false. The tax section in the MetaMask terms of service only applies to products and paid plans offered by MetaMask. In fact, it has no connection to users’ income taxes or on-chain crypto transactions.