diff --git a/basicswap/basicswap.py b/basicswap/basicswap.py
index 53e5772..88f2618 100644
--- a/basicswap/basicswap.py
+++ b/basicswap/basicswap.py
@@ -59,6 +59,7 @@ from .util.address import (
     decodeAddress,
     pubkeyToAddress,
 )
+from basicswap.util.network import is_private_ip_address
 from .chainparams import (
     Coins,
     chainparams,
@@ -521,10 +522,23 @@ class BasicSwap(BaseApp):
         rpcport: int = coin_settings['rpcport']
         timeout: int = coin_settings['rpctimeout']
 
-        proxy_host: str = self.tor_proxy_host if self.use_tor_proxy else None
-        proxy_port: int = self.tor_proxy_port if self.use_tor_proxy else None
-        if proxy_host:
-            self.log.info(f'Connecting through proxy at {proxy_host}.')
+        def get_rpc_func(rpcport, daemon_login, rpchost):
+
+            proxy_host = None
+            proxy_port = None
+            if self.use_tor_proxy:
+                have_cc_tor_opt = 'use_tor' in chain_client_settings
+                if have_cc_tor_opt and chain_client_settings['use_tor'] is False:
+                    self.log.warning('use_tor is true for system but false for XMR.')
+                elif have_cc_tor_opt is False and is_private_ip_address(rpchost):
+                    self.log.warning(f'Not using proxy for XMR node at private ip address {rpchost}.')
+                else:
+                    proxy_host = self.tor_proxy_host
+                    proxy_port = self.tor_proxy_port
+                if proxy_host:
+                    self.log.info(f'Connecting through proxy at {proxy_host}.')
+
+            return make_xmr_rpc2_func(rpcport, daemon_login, rpchost, proxy_host=proxy_host, proxy_port=proxy_port)
 
         daemon_login = None
         if coin_settings.get('rpcuser', '') != '':
@@ -533,7 +547,7 @@ class BasicSwap(BaseApp):
         if current_daemon_url in remote_daemon_urls:
             self.log.info(f'Trying last used url {rpchost}:{rpcport}.')
             try:
-                rpc2 = make_xmr_rpc2_func(rpcport, daemon_login, rpchost, proxy_host=proxy_host, proxy_port=proxy_port)
+                rpc2 = get_rpc_func(rpcport, daemon_login, rpchost)
                 test = rpc2('get_height', timeout=timeout)['height']
                 return True
             except Exception as e:
@@ -543,7 +557,7 @@ class BasicSwap(BaseApp):
             self.log.info(f'Trying url {url}.')
             try:
                 rpchost, rpcport = url.rsplit(':', 1)
-                rpc2 = make_xmr_rpc2_func(rpcport, daemon_login, rpchost, proxy_host=proxy_host, proxy_port=proxy_port)
+                rpc2 = get_rpc_func(rpcport, daemon_login, rpchost)
                 test = rpc2('get_height', timeout=timeout)['height']
                 coin_settings['rpchost'] = rpchost
                 coin_settings['rpcport'] = rpcport
diff --git a/basicswap/interface/xmr.py b/basicswap/interface/xmr.py
index 99246ac..265da44 100644
--- a/basicswap/interface/xmr.py
+++ b/basicswap/interface/xmr.py
@@ -1,7 +1,7 @@
 #!/usr/bin/env python
 # -*- coding: utf-8 -*-
 
-# Copyright (c) 2020-2023 tecnovert
+# Copyright (c) 2020-2024 tecnovert
 # Distributed under the MIT software license, see the accompanying
 # file LICENSE or http://www.opensource.org/licenses/mit-license.php.
 
@@ -27,16 +27,16 @@ from coincurve.dleag import (
 from basicswap.interface import (
     Curves)
 from basicswap.util import (
-    i2b,
+    i2b, b2i, b2h,
     dumpj,
     ensure,
     make_int,
     TemporaryError)
+from basicswap.util.network import (
+    is_private_ip_address)
 from basicswap.rpc_xmr import (
     make_xmr_rpc_func,
     make_xmr_rpc2_func)
-from basicswap.util import (
-    b2i, b2h)
 from basicswap.chainparams import XMR_COIN, CoinInterface, Coins
 
 
@@ -102,9 +102,17 @@ class XMRInterface(CoinInterface):
             manage_daemon: bool = chain_client_settings['manage_daemon']
             if swap_client.use_tor_proxy:
                 if manage_daemon is False:
-                    proxy_host = swap_client.tor_proxy_host
-                    proxy_port = swap_client.tor_proxy_port
-                    self._log.info(f'Connecting to remote {self.coin_name()} daemon at {rpchost} through proxy at {proxy_host}.')
+                    log_str: str = ''
+                    have_cc_tor_opt = 'use_tor' in chain_client_settings
+                    if have_cc_tor_opt and chain_client_settings['use_tor'] is False:
+                        log_str = ' bypassing proxy (use_tor false for XMR)'
+                    elif have_cc_tor_opt is False and is_private_ip_address(rpchost):
+                        log_str = ' bypassing proxy (private ip address)'
+                    else:
+                        proxy_host = swap_client.tor_proxy_host
+                        proxy_port = swap_client.tor_proxy_port
+                        log_str = f' through proxy at {proxy_host}'
+                    self._log.info(f'Connecting to remote {self.coin_name()} daemon at {rpchost}{log_str}.')
                 else:
                     self._log.info(f'Not connecting to local {self.coin_name()} daemon through proxy.')
             elif manage_daemon is False: