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Recently, one of the top cryptocurrency wallets, MetaMask, published an amendment to its terms and rules that has caused a stir in the crypto industry.
Concerns about the consequences of MetaMask's most recent policy were raised by a tweet from a crypto enthusiast who suggested that it would hinder decentralisation while also subjecting its users to tax requirements.
The tweet stated, "Decentralisation is dying; Metamask new update in terms and policy will withhold your taxes." It attracted the interest of crypto fans and business experts right once, which prompted a closer look at MetaMask's amended terms and rules.
The Twitter user tweeted a screenshot indicating that MetaMask is now in charge of identifying and paying taxes and other governmental fees on each party participating in the transactions and payments handled through its platform.
The section of the new policy where MetaMask "reserves the right to withhold taxes where required" was highlighted by the crypto influencer. Regarding the statement, several people expressed their opinions.
A pro-crypto Tedx speaker named Karnn Bhandarii claimed that MetaMask inserted the contentious sentence to appease its banking and Apple store partners. While it is impossible for anyone to possess a DeFi wallet, he posed an interesting query: "Which country taxes are they going to withhold?"
In his illustration:
an American citizen who lives in the UK, works in Dubai for a company, and makes occasional quick excursions to India. Which nation pays taxes? DeFi won't ever perish; in fact, it will expand.
The new policy would likely apply to customers in nations that impose capital gains taxes on cryptocurrency transactions, despite the fact that the business made no mention of which nations or territories would be covered by it.
