- May 21, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
ConsenSys, owner of the Ethereum wallet MetaMask, said on May 21 that it does not collect taxes from cryptocurrency users.
Sale taxes do not apply to MetaMask users
ConsenSys said on Twitter:
“Let’s clarify one thing upfront: MetaMask does NOT collect taxes on crypto transactions and we have not made any changes to our terms to do so.”
ConsenSys clarified that it only collects sales taxes on certain paid services — such as subscriptions to the Ethereum API Infura that are paid via credit card. It said that tax-related terms do not apply to MetaMask and other products without sales tax.
The company added that it is “aware of tweets circulating with inaccurate information” around its terms of service and said that those “claim[s] are false.”
Earlier, members of the crypto community raised concerns about MetaMask and ConsenSys’s terms of service. Those terms indicate that certain parties are required to pay taxes as well as other government fees, penalties, interest, and charges.
Some rumors went as far as to suggest that MetaMask could freeze user funds for tax-related reasons. However, there is no text in the terms of service that suggests this, nor is there any code that would allow the project to freeze user funds.
Crypto traders are expected to pay taxes
Though MetaMask users do not need to pay sales tax, cryptocurrency investors are required to report and pay taxes on capital gains in most jurisdictions.
Many major exchanges, including Coinbase and Binance.US, user trading activity to the U.S. Internal Revenue Service (IRS). Often, these companies provide tax forms, which clients can use when they file their own tax returns.
It is unclear whether MetaMask or ConsenSys have ever provided user information to the IRS. However, they have acknowledged that users should pay taxes.
The post MetaMask firm counters FUD, says it doesn’t collect taxes from wallet users appeared first on CryptoSlate.
