Is MetaMask Going To Withhold Users' Crypto For Taxes?
One of the most popular crypto wallets MetaMask is doing an awesome job to onboard people into the crypto industry. They make it easy and simple to buy crypto with fiat currency. People can use PayPay to purchase Ethereum directly.
But is Metamask going to withhold your crypto for taxes? People are talking about it which creates some noise in the crypto community. Popular crypto hardware manufacturer Ledger is heavily criticized for offering the private seed phrase recovery service known as Ledger Recover. You can feel the present sentiment in the market.
Now when you see the terms of use about MetaMask that they have the right to withhold taxes if that is required, people can react quickly. What the trusted crypto hardware provider Ledger is about to do with Ledger Recover, that is unexpected. The FUD about Metamask spreads pretty quickly.
You may not differentiate the FUD and facts at a glance sometimes. I am not a lawyer or, do not have expertise in that field. The parent company of MetaMask tweeted about this and cleared its stance. They mentioned that they did not change their terms of use and do not collect taxes on customers' cryptocurrency transactions.
If you visit MetaMask's official website and click the terms of use, it will redirect you to the consensys website. In the Fees and Payment section, they mention reserving the right to withhold taxes. But it is exclusively for their products and paid plans that they offer.
Bad news spread super fast. The good news does not spread at the same speed. By the way, MetaMask has the right to change and update its terms and conditions based on changing situations and regulations. So things can change later in the future.
The centralized authority will do its thing to sustain its power. They will not let crypto adoption happen easily since they view it as a major threat to their power and control. Let's see what people adopt and how everything moves forward.
Image Sources: 1, and 2.
Reference: 1.
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I think it's a danger of all these centralized crypto wallets and I think people should think careful about where they store their crypto. The only issue I see is that Metamask is the primary way that I interact with CUB and I don't know if the other crypto wallets will also do something similar.
I completely agree with you. From time to time, we need to review our decisions in crypto and choose the better alternative. Hope MetaMask would not do something silly that will force users to make a different choice.
Maybe they have the pressure for centralized authorities to eventually implement a mechanism of this kind.
What they said on Twitter is, withholding taxes is only for their own products. This is not applicable to everything on crypto transactions.