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MetaMask to withhold capital gains tax? Developer ConsenSys refutes the claim

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MetaMask to withhold capital gains tax? Developer ConsenSys refutes the claim

Table of Contents

Origin of "MetaMask Taxation" Rumors

On May 17, Anton Bukov, co-founder of 1inch, tweeted, quoting the Terms of Use from MetaMask developer ConsenSys. The third point under the fourth section "Fees and Payment" mentioned "Taxation":

According to applicable laws, all parties must pay relevant taxes in transactions and other government fees, including fines, interest, any other additional charges, and fees in this agreement. Unless otherwise noted, all user fees are exclusive of taxes, and ConsenSys reserves the right to withhold taxes when necessary.

Anton Bukov requested ConsenSys to provide an explanation.

ConsenSys Response: Legal Terminology Too Complex

On May 22, ConsenSys clarified in a tweet that the rumors were false, MetaMask does not impose taxes on crypto transactions, and there will be no amendments to the Terms of Use.

ConsenSys mentioned that the misunderstood tax rule only applies to products that require the payment of consumption taxes, such as the developer subscription service of its API service provider Infura.

ConsenSys emphasized:

Legal terms may be complex, but the key point is to emphasize that this tax rule does not apply to any other products that do not involve consumption taxes. When sharing information with users, we uphold transparency and accuracy and are committed to combating misinformation about our related products and services.