Turkey has announced a new fiscal reform that includes a 0.03% transaction tax on cryptocurrency trading, aiming to counterbalance the country’s budget deficit exacerbated by recent earthquakes in 2023.

The move, projected to generate 3.7 billion liras annually, targets the burgeoning crypto market among Turkish retail investors seeking shelter from inflation and currency devaluation.

Proposed as part of broader tax reforms expected to yield $7 billion, this initiative represents Turkey’s most significant tax overhaul in two decades, despite earlier denials of such plans.

Political challenges are anticipated as President Erdogan's ruling party prepares to push the legislation forward in parliament.