MetaMask developers responded to cryptocurrency wallet tax collection

MetaMask developers responded to cryptocurrency wallet tax collection

83
Subscribe

MetaMask developers responded to cryptocurrency wallet tax collection
The developers of the cryptocurrency wallet MetaMask commented on the conditions of tax collection
ConsenSys was forced to comment on an unobvious clause in its terms of service regarding the taxation of user transactions

ConsenSys, the developer of one of the most popular cryptocurrency wallets, MetaMask, has clarified its position on the possible withholding of taxes on transfers within the wallet. The theory quickly spread in the cryptocurrency community that MetaMask would withhold cryptocurrency from users who fail to pay taxes on transactions within the wallet.

The company's statement came after one of MetaMask's terms of service clauses resonated within the cryptocurrency community. This was brought to attention in the context of the recent scandal with another popular cryptocurrency wallet, Ledger.

With the new firmware, the device acquired a lost key recovery tool, Ledger Recovery, which allows you to take a backup copy of the keys to access the assets on the wallet to external partners for safekeeping. This contradicts the idea of the so-called cold storage of cryptocurrencies, where keys to the wallet are always off the grid.

In the midst of the discussions surrounding Ledger's decision, several opinion leaders from the crypto sphere pointed to MetaMask's terms of service and the controversial tax clause. In response, ConsenSys released a statement to social media on May 22, clarifying that taxation does apply to certain solutions around the MetaMask wallet, but only affects specific products and paid services.

For example, Infura, ConsenSys' widespread data exchange solution (API), which is used internally by the wallet, implies that taxes are paid by outside developers when the tool is used commercially. But that only applies to selective paid subscriptions, which they pay for with regular money.

ConsenSys has already been criticized last year for collecting user data, including IP addresses, Ethereum wallet data, and other information to identify users through the same Infura tool that is included by default in a wallet with tens of millions of users.

Other news

Bitcoin is growing without mass hype. When everyone starts talking about cryptocurrency
Traders in options are betting on Bitcoin to rise above $65,000.
How Bitcoin Halving Will Affect Its Price. Key Points from the Grayscale Report
Bitcoin has returned to growth and reached $45,000. What's next?
In London, the trial of the self-proclaimed creator of Bitcoin has begun.
One of the best months. What will happen to Bitcoin in February
Trustpilot