ConsenSys, the company that made Metamask, released a new privacy policy agreement on November 23. It says that MetaMask will start collecting users’ IP addresses and Ethereum wallet addresses during transactions that happen on the blockchain.
However, ConsenSys says that users’ data will only be collected using Infura, which is MetaMask’s default Remote Procedure Call (RPC) application.
People who use MetaMask with their own Ethereum node or a third-party RPC provider are not affected by the new ConsenSys privacy policy. Instead, the other RPC provider’s terms apply.
How do people in the community feel about this Metamask update?
Most people in the nft and crypto community are unhappy about it. Adam Cochran, a partner at Cinneamhain Ventures, for example, said:
There is nothing more important than consumer privacy, especially when it comes to your financial data – you have a right to be anonymous.
Metamask has provided a great free service for a long time, but their decision to log IPs and tie it to transactions is unacceptable.
—
Adam Cochran (adamscochran.eth) (@adamscochran) November 24, 2022
Why did Consensys do this?
The regulatory requirements around crypto have become stricter in light of recent events, such as SBF’s arrest and FTX’s downfall.
As a result, ConsenSys has joined other well-known Web 3 companies, such as Coinbase, that have started collecting IP addresses for this reason.
ConsenSys says this kind of information can be shared with affiliates, during business transactions, or to meet “Know Your Customer” and “Anti-Money Laundering” requirements set by law enforcement.
So, Consensys can’t do anything about this, even though a lot of people are upset about it. In order to maintain their business, they need to follow regulations.
What can you do about this?
People prefer crypto for a reason, one of which is decentralization. Crypto makes people feel more in control and safe, and to be honest, this new policy from Metamask is contrary to that in many ways.
As a result, many community members are now thinking of ways to bypass this new update to keep their IP addresses and identities private despite all this. Many threads have been posted on Twitter about what you can do about this.
Some recommend using a VPN, while others recommend using a completely different cryptocurrency wallet. For your reference, here is one example of that thread:
If you’re using MetaMask, you should know that your IP address gets logged with each transaction you make. Making it super easy to identity who you are and your location.
If you’re like me and you don’t agree with that, here is what you can do. 🧵
—
𝕽𝖔𝖒𝖊𝖔 🦇🔊 (@RomeoTrades) November 25, 2022
Overall, make sure to always do your own research and read the news to stay up-to-date and safe in this space!
