Turkey is set to impose a 0.03% transaction tax on cryptocurrency trading as part of a comprehensive fiscal overhaul aimed at addressing the country's budget deficit, exacerbated by the 2023 earthquakes. This move is expected to generate substantial revenue, approximately 3.7 billion TRY ($113 million) annually, and marks the largest change to Turkey's tax system in decades.

The new tax measures aim to capitalize on the growing popularity of cryptocurrency trading among Turkish investors seeking a hedge against inflation and currency depreciation. The government plans to regulate the rapidly growing cryptocurrency market, with the Central Bank of the Republic of Turkey (CBRT) already testing its digital Turkish lira.

While previous attempts at transaction taxes have faced backlash, the ruling party, led by President Recep Tayyip Erdogan, is expected to pass the proposed legislation. The move aligns with the government's strategic effort to enforce fiscal discipline and improve price stability amid challenging economic conditions.