MetaMask does not charge taxes on crypto, clarifies amid rumors
MetaMask, ConsenSys, to be more specific, has come out to clarify that the viral tweet about the company mentioning that it withholds cryptocurrency for taxes is inaccurate. Adding further to that clarification, ConsenSys has said that it does not collect taxes on transactions for cryptocurrency, and there are no plans under consideration to modify this policy.
Directly addressing the tweet, ConsenSys said that the tweet being circulated on the internet about this piece of information is wrong.
Details about tax are mentioned in terms of service; however, they fall under Fee & Payment section. They are related to products and plans offered to customers by the venture. The section, therefore, does not apply to other products of ConsenSys, including MetaMask, since they do not involve sales tax.
It has also been compared to Ledger’s new offering, Ledger Recover, by calling it a backdoor to ostensibly secure design.
Several members of the community have reacted differently to the rumor. While some believe it to be true, others are coming out in support of ConsenSys with an explanation to help the company to explain the matter in a better way. One of the Twitter users who goes by the name Ash Crypto said that decentralization was dying. Another user said that MetaMask had joined the party with Ledger.
An apt response comes from printer_brr, saying that everyone is tweeting the issue blindly instead of giving it a read one time. Extending this further. The Twitter user said that ConsenSys could withhold tax only if someone buys a product from them. Just like Amazon when a customer shops from the website.
Another supportive clarification has said that it was about understanding the difference between sales tax and capital gains. Taxes are applicable based on the region and depending on the payment method used by the customer – credit/debit card, for example.
ConsenSys has, for now, expressed its commitment to combating misinformation about its services and products, remaining unwavering to the community.
Launched in 2016, MetaMask aims to simplify access for the community to decentralized applications and exchanges. The digital wallet majorly accepts ETH and other tokens on the same network. It has registered over 21 million users across the globe and now aims to expand further in the times to come. More details can be read in our MetaMask review, which also sheds light on its functionality.
It has been clarified by ConsenSys that the tweet is nothing but a rumor arising from the misinterpretation about a point that falls under Fees & Payment. It has further added that there is no plan to withhold cryptos for taxes in the future.