• Crypto Twitter panicked over false rumors that MetaMask, a popular crypto wallet, would start withholding taxes.
• ConsenSys, MetaMask’s parent company, promptly denied this speculation.
• The tax withholding term only applies to sales taxes on their products and services.
False Rumors About Tax Withholding
Crypto Twitter was in a frenzy over the weekend when rumors spread that MetaMask, a popular crypto wallet, would start withholding taxes. Influencers took to Twitter to express their concerns about MetaMask and its commitment to decentralization and self-custody. These criticisms prompted an urgent response from ConsenSys, MetaMask’s parent company.
Reaction From Crypto Influencers
WhaleChart, a widely followed crypto account, fanned the flames on Sunday by tweeting “Pay your taxes or Metamask will pay them for you”. This sentiment was echoed by other crypto influencers like Shannen Michaela who created unease throughout the community. Many questioned whether MetaMask was still committed to decentralization and self-custody values in the crypto world.
Clarification From ConsenSys
ConsenSys took to social media to clarify the situation and debunk the rumors that MetaMask does not collect taxes on crypto transactions nor have they made any changes in their terms of service regarding this matter. They explained that the tax withholding clause actually refers to sales taxes on their products and services. Glassnode accounting also pointed out this fact as well.
MetaMask’s Commitment To Decentralization And Self-Custody
Decentralization and self-custody are cherished values in the crypto world which is why users were so alarmed at these rumors regarding tax withholding with MetaMask wallets. However, after clarification from ConsenSys it appears that these concerns were unfounded as there has been no change in terms of service regarding taxation on cryptocurrency transactions with MetaMaks wallets..
In conclusion, after clarifications from both influencers and Consensys it appears that there is no need for concern about taxation with regards to using Metamask wallets for cryptocurrency transactions or its commitment to decentralization and self-custody values in crypto space