Crypto wallet MetaMask is facing criticism from the crypto community after revealing its new terms of service, which state that it has the ability to hold back consumer funds for tax payments.
The new terms and conditions of crypto wallet MetaMask are causing confusion and surprise within the community. According to the new terms, if you fail to pay taxes, MetaMask has the authority to retain the owed amount from your MetaMask wallet and give it to the tax departments.
MetaMask and ConsenSys are receiving criticism for holding back consumer funds to pay taxes, which goes against the principles of decentralization and financial freedom.
MetaMask’s updated terms receive backlash from crypto community.
Under MetaMask’s new terms of service, developed by ConsenSys, consumer fees are considered as taxes unless specified otherwise. They also have the right to withhold taxes when necessary.
MetaMask users must now identify and pay all taxes, as well as government fees and charges. ConsenSys implemented significant changes to the Terms of Use for their offerings, including MetaMask, in April 2023.
The co-founder of 1inch has raised concerns about MetaMask’s new terms, specifically regarding the provision that grants MetaMask the authority to withhold taxes.
Explain me new @MetaMask ToS:
4.3 Taxes. Each party will be responsible, as required under applicable law, for identifying and paying all taxes and other governmental fees and charges. (…) We reserve the right to withhold taxes where required. https://t.co/XA5Mt174Uk— Anton Bukov (e/acc)🦇🔊 (@k06a) May 17, 2023
Decentralization Is Dying
The crypto community expressed its disapproval on Twitter, criticizing MetaMask for going against the principle of decentralization and financial freedom. Some users drew connections to the Ledger controversy, suggesting that the inclusion of a backdoor in MetaMask’s terms is intended to comply with government regulations, including tax obligations.
Metamask has not provided any clarifications regarding the confusion among the crypto community. Previously, in December, ConsenSys received criticism for its data collection practices. It shared users’ transaction data and IP addresses with its other product, Infura. In response to the backlash, Metamask made updates to the MetaMask wallet.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
