MetaMask starts logging users’ IP addresses and ether ETH/USD Wallet addresses during on-chain transactions according to an updated privacy agreement released by wallet developer ConsenSys.

Data is only collected when users use Infura, the standard remote procedure call (RPC) application provided by MetaMask, according to ConsenSys.

Infura is a developer of blockchain tools and APIs that Consensys acquired in October 2019.

A software communication mechanism known as RPC allows Web3 apps to communicate remotely with blockchains.

Users using their own Ethereum node or an external RPC provider are not subject to the ConsenSys privacy policy published on November 23.

Instead, the terms of the other RPC provider are applied to them.

Also read: New FTX chief appalled at crypto exchange mismanagement under Sam Bankman-Fried

User information may be shared with affiliates and law enforcement agencies

ConsenSys further stated that the information received may be shared with affiliated companies during business transactions or to comply with know-your-customer and anti-money laundering requirements imposed by law enforcement agencies.

With more than 21 million monthly active users, MetaMask is one of the most popular self-custody wallets on the market right now.

In response to the announcement Adam CochranPartner at Cinneamhain Ventures, specified, “Nothing is more important than consumer privacy, especially when it comes to your financial data – you have a right to anonymity. Metamask has long provided a great free service, but their decision to log IPs and tie them to transactions is unacceptable.”

Hayden AdamsInventor of the Uniswap protocol sketched that neither the decentralized exchange nor any third-party tools on the network can track IP addresses.

Next: El Salvador President Nayib Bukele and Tron’s Justin Sun buy 1 bitcoin a day