Does the wallet secretly collect taxes on transactions?

Fear, uncertainty and doubt (FUD) are spreading rapidly on social networks. Recent example: This rumor, Metamask would levy taxes on its users’ transactions, led to the scandal on crypto-Twitter. ConsenSys, the parent company behind the crypto wallet, is now taking care of it enlightenment. The rumors are “inaccurate information” based on a misinterpretation of the Metamask’s Terms of Use.

According to the company, the tax section of the relevant terms of service relates exclusively to the products and paid plans offered. Specifically it says:

Metamask does not collect taxes on crypto transactions. We have not made any changes to our terms in this regard.

Nonetheless, user confidence has been shattered. Last year it turned out that Metamask was collecting user data in the meantime. The cunning wallet saved, among other things, all information about identity, home address, email addresses, telephone number, user names, passwords, credit cards, bank account and the IP and wallet address.

Just last week, the hardware wallet manufacturer Ledger caused an outcry in the crypto scene. Metamask users were concernedthat ConsenSys is taking a similar path. As the wallet provider points out, this is not the case. “We believe in transparency and accuracy when it comes to sharing information with our users. Our commitment to combating misinformation about our products and services remains steadfast,” the company said.

In the wake of the scandal, Metamask’s CEO apologized. Even then, many users said they were leaving the service. Even after the current clarification, some investors are probably fed up with ConsenSys and exchange the wallet.

Web3 wallet drives crypto adoption

Despite the many controversies, the crypto wallet is considered a major adoption driver. With 31 million active users, Metamask is a central bridge into the world of cryptocurrencies. For example, since mid-April it has been possible to buy Bitcoin and Co. via PayPal, card payment and bank transfer.

The feature is available to users from 189 countries. In Germany, Austria and Switzerland there is currently no PayPal payment option. Bank transfers also take “1 – 5 business days”. You can find out why the MetaMask founder, Dan Finlay, is sometimes ashamed to work in the crypto industry in BTC-ECHO Magazine Issue 69.