{"id":396658,"date":"2023-05-22T20:37:15","date_gmt":"2023-05-22T20:37:15","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=396658"},"modified":"2023-05-22T20:37:15","modified_gmt":"2023-05-22T20:37:15","slug":"no-metamask-is-not-withholding-customers-crypto-for-taxes","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/no-metamask-is-not-withholding-customers-crypto-for-taxes","title":{"rendered":"No, Metamask Is Not Withholding Customers\u2019 Crypto for Taxes"},"content":{"rendered":"<p><span style=\"font-weight: 400\">ConsenSys, the company behind MetaMask, a widely-used crypto wallet, has dismissed rumors suggesting that it collects taxes from cryptocurrency users.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">On May 22, the company took to Twitter to inform its 270,000 followers that these rumors were unfounded and arose from a misunderstanding of Metamask&rsquo;s terms of service.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">? We are aware of tweets circulating with inaccurate information about ConsenSys' terms of service. <\/p>\n<p>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. <\/p>\n<p>This claim is false.<\/p>\n<p>&mdash; ConsenSys (@ConsenSys) <a href=\"https:\/\/twitter.com\/ConsenSys\/status\/1660353688446050304?ref_src=twsrc%5Etfw\">May 21, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span style=\"font-weight: 400\">MetaMask Debunks Tax Collection Rumors: Clarifies Terms of Service Misinterpretation<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The company clarified that the tax section in its terms of service was specifically related to its products and paid plans and had no connection to on-chain crypto transactions.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400\">&ldquo;Although legal terminology can be complex, it&rsquo;s important to emphasize that this section does not apply to MetaMask or any other products that do not involve sales tax.&rdquo;<\/span><\/p>\n<p><i><span style=\"font-weight: 400\">&ldquo;MetaMask does not collect taxes on crypto transactions, and there have been no changes to our terms to enable such collection.&rdquo;<\/span><\/i><\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">If you haven&rsquo;t paid taxes, Meta Mask will hold your crypto.<\/p>\n<p>Why should Ledger have all the fun?<\/p>\n<p>Meta Mask joins the party now! <\/p>\n<p>??? <a href=\"https:\/\/t.co\/RIBoPzmiei\">pic.twitter.com\/RIBoPzmiei<\/a><\/p>\n<p>&mdash; Kashif Raza (@simplykashif) <a href=\"https:\/\/twitter.com\/simplykashif\/status\/1660145663244656641?ref_src=twsrc%5Etfw\">May 21, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span style=\"font-weight: 400\">Some crypto community members raised concerns on May 21 when they noticed a section in Metamask&rsquo;s terms of service mentioning the company&rsquo;s right to withhold taxes as required. However, as some had speculated, this provision was not related to users&rsquo; income taxes.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The misinformation gained significant attention and reached the front page of r\/cryptocurrency on Reddit, amassing over 500 upvotes and 600 comments. However, skeptical individuals within the crypto community promptly debunked the claims.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">One pseudonymous Twitter user, printer_brrr, criticized the lack of thorough reading before spreading the information, stating, &ldquo;Everyone is blindly tweeting about the MetaMask tax clause in TOS without actually reading it.&rdquo; They further clarified, &ldquo;If you purchase a product from MetaMask, they may withhold taxes, such as sales tax, for that specific product, similar to how Amazon handles purchases.&rdquo;<\/span><\/p>\n<h2><span style=\"font-weight: 400\">MetaMask: Popular and Versatile Crypto Wallet with Security Considerations<\/span><\/h2>\n<p><span style=\"font-weight: 400\">MetaMask has become one of the most popular crypto wallets for storing digital assets. It operates on the <\/span><a href=\"https:\/\/insidebitcoins.com\/news\/ethereum-blockchain-faces-challenges-with-block-finalization-pending-transactions-at-risk\"><span style=\"font-weight: 400\">Ethereum network<\/span><\/a><span style=\"font-weight: 400\"> but supports other networks such as BSCchain and Polygon.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Users find MetaMask easy to use, thanks to its mobile app and simple browser plugin. It enables users to send cryptocurrencies to any wallet or exchange and add custom tokens. While MetaMask provides a secure cryptocurrency storage option, it has drawbacks. Being a hot wallet connected to the internet, it is more susceptible to attacks and theft.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The seed phrase is another crucial aspect to consider. If users accidentally disclose their seed phrase, malicious actors can easily steal their assets. However, this is not a flaw with the wallet itself; users must keep their seed phrase safe. It is important to remember that the only way to recover an account on MetaMask is through the seed phrase. Losing the seed phrase makes it impossible to retrieve the funds. Therefore, it is crucial to never share the seed phrase with anyone.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Despite the availability of various <\/span><a href=\"https:\/\/insidebitcoins.com\/ethereum-wallets\"><span style=\"font-weight: 400\">blockchain wallets, MetaMask<\/span><\/a><span style=\"font-weight: 400\"> has emerged as a top choice among users, surpassing several alternative options.<\/span><\/p>\n<h2><b>More News<\/b><\/h2>\n<p><a href=\"https:\/\/insidebitcoins.com\/news\/as-u-s-budget-talks-resumption-biden-slams-rich-crypto-traders\"><span style=\"font-weight: 400\">As U.S. Budget Talks Resumption, Biden Slams Rich Crypto Traders<\/span><\/a><\/p>\n<p><a href=\"https:\/\/insidebitcoins.com\/news\/copium-tank-nfts-trend-on-opensea-best-nfts-to-buy-now\"><span style=\"font-weight: 400\">Copium Tank NFTs Trend On OpenSea &ndash; Best NFTs To Buy Now<\/span><\/a><\/p>\n<p><a href=\"https:\/\/insidebitcoins.com\/news\/oscar-ramos-reviews-new-memecoin-presale-aidoge-ai\"><span style=\"font-weight: 400\">Oscar Ramos Reviews New Memecoin Presale AiDoge (AI)<\/span><\/a><\/p>\n                                        <div class=\"inContentProviderSingle inContentColor--insidebitcoins fc-row\">\n                        <div class=\"inContentProviderSingle--wrapper\">\n                            <div class=\"container\">\n                                <div class=\"row mb-lg-3\">\n                                    <div class=\"col-12 col-md-8\">\n                                        <p class=\"inContentProviderSingle--title\">Smog (SMOG) - 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