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MetaMask New Terms Goes Viral As It Can Withhold Consumer Funds To Pay Taxes

Crypto wallet MetaMask faces backlash from the crypto community as new terms of services reveals it can withhold consumer funds to pay taxes.
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MetaMask New Terms Goes Viral As It Can Withhold Consumer Funds To Pay Taxes

Crypto wallet MetaMask’s new terms of conditions going viral as it confuses and surprised the community. If you don’t pay taxes, Metamask reserves the right to withhold it from your Metamask wallet for the tax departments.

MetaMask and ConsenSys now face backlash for withholding consumer funds for paying taxes, which is against decentralization and financial freedom.

 

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MetaMask Updated Terms Face Backlash From Crypto Community

According to new terms of service by MetaMask developer ConsenSys, fees payable by consumers are “exclusive taxes unless otherwise noted. We reserve the right to withhold taxes where required.”

MetaMask users are required to identify and pay all taxes, as well as government fees and charges. ConsenSys made some important changes to the Terms of Use related to ConsenSys offerings, including MetaMask in April 2023.

1inch co-founder earlier raised questions on the new MetaMask’s terms stating that MetaMask holds the right to withhold taxes.

Also Read: Bitcoin Going To The Moon In 2023 Summer, Here’s What Elon Musk Says

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Decentralization Is Dying

Decentralization is the primary principle of crypto. The crypto community took to Twitter to criticize the move by MetaMask, claiming it is against decentralization and financial freedom. Some even linked it to the Ledger controversy, saying the backdoor is for paying taxes and meeting other requirements as per the government’s rules and laws.

Metamask has not released any clarifications regarding the crypto community confusion. In December, ConsenSys faced backlash reading its data collection practices. It shared users’ transaction data alongside their IP addresses with its other product Infura. Metamask later updated the MetaMask wallet in response to the backlash.

Also Read: Ethereum Client Releases Pruning Update After Vitalik Buterin Updated The Roadmap

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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