© Reuters Crypto Community reacts to MetaMask’s updated policy on tax liabilities
- MetaMask’s policy agitates the crypto community as it raises concerns about decentralization.
- MetaMask stated that it reserves the right to withhold taxes where applicable.
- A TEDx speaker argued that MetaMask includes the controversial line to appease Apple (NASDAQ:).
In a recent turn of events, MetaMask, one of the leading cryptocurrency wallets, announced a new update to its terms and policies which has caused a storm within the crypto community.
A tweet by a cryptocurrency enthusiast has raised concerns about the implications of MetaMask’s latest policy, suggesting it could undermine decentralization while imposing tax liabilities on its users.
“Metamask’s new update terms and policy will deduct your taxes; decentralization is dying,” the tweet read. It quickly caught the attention of crypto enthusiasts and industry insiders, which led to close scrutiny of MetaMask’s updated terms and policies.
Breaking the new MetaMask update in the Terms and Policy will result in your taxes being withheld. Decentralization is dying pic.twitter.com/wqpwAd2BQh
– Ash Crypto (@Ashcryptoreal) May 21, 2023
According to screenshots shared by a Twitter user, MetaMask is now responsible for determining and paying taxes and other government fees on each party involved in transactions and payments facilitated through its platform.
The crypto influencer highlighted a portion of the new policy which states that MetaMask “reserves the right to withhold taxes where applicable.” Several people shared their views on the statement.
Karnn Bhandarii, a pro-cryptocurrency Tedx speaker, argued that MetaMask included the controversial line to appease the Apple Store and some banking partners. While not everyone can be a DeFi wallet holder, it did raise a thought-provoking question: “What state taxes would be withheld?”
In his example: A US citizen works in the UK and has a business in Dubai with short trips to India. Which country gets taxes? DeFi will never die; In fact, it will grow more.
Notably, the company did not specify which countries or jurisdictions would be subject to the new policy; However, it is likely to apply to users in countries that levy capital gains taxes on crypto transactions.
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