• MetaMask, a popular crypto wallet, was subject to false rumors that it would start withholding taxes.
• Crypto influencers took to Twitter to express their concerns about the possibility of MetaMask withholding taxes.
• ConsenSys, MetaMask’s parent company, denied the rumor and clarified that the clause only applies to sales taxes on its products and services.
MetaMask False Tax Withholding Rumors
Rumors spread that MetaMask, a popular crypto wallet, would start withholding taxes. Influencers took to Twitter to express their concerns about MetaMask.
ConsenSys Denies Rumors
ConsenSys, MetaMask’s parent company, promptly denied these rumors. Decentralization and self-custody are essential for crypto wallets.
Crypto Frenzy Over Terms of Service Change
An alleged change in the Terms of Service sparked widespread speculation and panic on Crypto Twitter.
Does MetaMask Withhold Taxes?
WhaleChart fanned the flames on Sunday by suggesting that „Metamask will pay [taxes] for you“. Other influencers echoed this sentiment which prompted an urgent response from ConsenSys.
Tax Clause Clarified
The company took to social media to clarify the situation and debunk the rumors. Specifically, they explained that MetaMask does not collect taxes on crypto transactions; rather it’s referring to sales taxes on its products and services.