According to a revised privacy policy agreement published by ConsenSys on November 23, MetaMask will begin collecting user IP addresses and Ethereum wallet addresses during on-chain transactions.
However, ConsenSys, the creator of the wallet, explains that the data collection of users will only apply if they use MetaMask’s default remote procedure call (RPC) Infura application. Therefore, people using their own Ethereum node or a third-party RPC provider with MetaMask are not subject to ConsenSys’ new privacy policy. Instead, the terms of the other RPC provider apply.
According to ConsenSys, Information collected in this manner may be disclosed to affiliates, during business dealings, or to comply with “know your customer” and anti-money laundering requirements by authorities. MetaMask is currently one of the most popular self-custody wallets on the market, with more than 21 million monthly active users.
The reaction within the cryptocurrency community has been mostly negative. For example, Adam Cochran, partner at Cinneamhain Ventures, stated:
“There is nothing more important than consumer privacy, especially when it comes to your financial data – you have the right to remain anonymous. Metamask has provided a great free service for a long time, but their decision to log IP addresses and link them to transactions is unacceptable.”
At the same time, Hayden Adams, inventor of the Uniswap protocol, responded to questions sketching that the decentralized exchange does not track IP or allow third-party tools on the platform to do so. ConsenSys has joined the ranks of notable Web 3.0 companies like Coinbase that have embraced IP harvesting in part because of increasingly stringent regulations.
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