Is Metamask able to withhold our funds with the new Terms of Service?

A friend pointed out a line in the new Terms of Service for Metamask.

“4.3 Taxes. Each party will be responsible, as required under applicable law, for identifying and paying all taxes and other governmental fees and charges (and any penalties, interest, and other additions thereto) that are imposed on that party upon or with respect to the transactions and payments under this Agreement. All fees payable by you are exclusive taxes unless otherwise noted. We reserve the right to withhold taxes where required.”

Note the last line. Is this a new thing or has this always been here? Does this mean that Metamask the company has the technical capability to restrict your use from Metamask generated wallets? Or is it just a legal statement to cover their asses in the case that a user of Metamask is willfully choosing not to pay their taxes?

2 thoughts on “Is Metamask able to withhold our funds with the new Terms of Service?”

  1. Beep Boop

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  2. >All fees payable by you are exclusive taxes unless otherwise noted. We reserve the right to withhold taxes where required.

    This should be referring to sales taxes and not capital tax. So when you buy anything online via your credit/debit card, different counries and states may have different sales tax regulation. Some tax based on where the company is situated, others based on where the business was conducted in, and/or where the consumer is located.

    Metamask used to just be a wallet but it now offer the means to buy crypto directly in the mobile app. The above taxes should refer to sale tax related to purchase of crypto where applicable.

    If you don’t buy crypto via Metamask, then it should not apply to you.

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