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So Metamask can 'withold' your taxes from crypto fees and transactions now? What's up with wallets these days?

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by COINS NEWS 113 Views

So Metamask can 'withold' your taxes from crypto fees and transactions now? What's up with wallets these days?

After the whole Ledger kerfuffle, today I read up some information about ConsenSys' new Terms of Use, which apparently indicates that Metamask can 'withold' owed taxes, whatever that means, from our wallets.

Check the yellow highlights

You can find the sentence in question under section 4.3 under the new Terms of Use: https://consensys.net/terms-of-use/

So what does this mean? Seems like nobody knows. Are we going to get another layer of 'fees' atop our transaction fees now? Or are we going to receive tax documents from MetaMask with details on how much we owe? Or perhaps get slapped with sales tax every time we use other ConsenSys products?

I've been looking up for more information online, and besides a few disparate articles and one about Anton Bukov, the co-founder of 1inch also being confused, there's not been much clarification and news from Metamask's end.

What do you guys think this means? Any insight from some folks that are in tax law here?

Edit: ConsenSys has responded to the above, and it's pretty much what u/thinkingperson has surmised: https://twitter.com/ConsenSys/status/1660353688446050304

"The tax section in our terms of service falls under the "fees and payment" section, and it exclusively pertains to products and paid plans offered by ConsenSys. For example, Infura has credit card developer subscriptions which include sales tax."

"Legal terminology can be complex, but it's crucial to emphasize that this section DOES NOT apply to MetaMask or any other products that don't involve sales tax. We believe in transparency and accuracy when it comes to sharing information with our users."

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