• MetaMask, a popular crypto wallet, received false rumors of tax withholding.
• Crypto influencers spread panic and confusion, prompting ConsenSys to deny the rumors.
• The clause in the Terms of Service was actually about taxes on their products and services.
False Rumors About MetaMask Tax Withholding
Rumors spread that MetaMask, a popular crypto wallet, would start withholding taxes. Influencers took to Twitter to express their concerns about MetaMask. Decentralization and self-custody are essential values in crypto so the crypto world was in a frenzy over the weekend over this issue. An alleged change in the Terms of Service sparked widespread speculation and panic on Crypto Twitter.
Does MetaMask Withhold Taxes Users Owe?
WhaleChart, a widely followed crypto account, fanned the flames on Sunday May 21st with their tweet “Pay your taxes or Metamask will pay them for you”. Other crypto influencers echoed this sentiment creating unease throughout the community with questions about Metamask’s commitment to decentralization. This prompted an urgent response from ConsenSys, Metamask’s parent company who took to social media to dispel these rumors stating they do not collect taxes on crypto transactions and had not made any changes to their terms of service regarding taxes.
Taxes On Products And Services
In reality, the clause referred to taxes on their products and services which are subject to sales taxes like any other business does when they sell something. Glassnode accounting pointed out that ConsenSys has to withhold taxes on sales of its products as stated by this clause in its Terms of Service.
Crypto Community Reacts To False Rumors
The reaction from users was mixed as many appreciated ConsenSys for taking responsibility and issuing an urgent response while others criticized how long it took them to clarify this situation after such anxiety had already been created within the community over false rumors that were spreading quickly across various social media platforms like Twitter and Reddit .
Ultimately it is important for companies like ConsenSys who create solutions with increasing popularity within the crypto space take responsibility for clarification purposes when such events occur as soon as possible so users can have peace mind knowing that their funds are safe from malicious actors falsely claiming certain aspects related to taxation or otherwise are true when they are not .