User IP addresses will start being gathered by MetaMask.

Over 21 million people use the well-known browser wallet on a monthly basis.

On Nov. 23, ConsenSys released an updated privacy policy agreement that said that starting with on-chain transactions, MetaMask would start logging users’ IP addresses and Ethereum wallet addresses.

However, the wallet’s developer, ConsenSys, warns that using MetaMask’s default Remote Procedure Call (RPC) application Infura is the only way for users’ data to be collected. Therefore, users of MetaMask who are utilizing their own Ethereum node or an external RPC provider are not covered by the most recent ConsenSys privacy policy. Instead, the other RPC provider’s terms are in effect.

ConsenSys claims that information obtained in this way may be provided to affiliates, during business transactions, or to satisfy law enforcement-mandated know your customer and anti-money laundering obligations. With more than 21 million monthly active users, MetaMask is presently one of the most well-liked self-custody wallets available.

The cryptocurrency community has largely responded negatively. Adam Cochran, a partner at Cinneamhain Ventures, for instance, said:

“Consumer privacy is crucial, especially when it comes to your financial information; you have a right to anonymity. Longtime free service provider Metamask has made a terrible mistake by logging IPs and connecting them to transactions.”
In response to questions, the creator of the Uniswap protocol, Hayden Adams, stated that the decentralized exchange neither tracks IP nor permits third-party tools on the network to do so. Due in part to more stringent laws, ConsenSys has joined the ranks of significant Web 3.0 businesses like Coinbase that have adopted IP gathering.

Leave a Reply