diff --git a/src/masternodes/errors.h b/src/masternodes/errors.h
index fb706e5a46..58aeb04705 100644
--- a/src/masternodes/errors.h
+++ b/src/masternodes/errors.h
@@ -427,11 +427,11 @@ class DeFiErrors {
     }
 
     static Res TransferDomainETHSourceAddress() {
-        return Res::Err("Src address must not be an ETH address in case of \"DVM\" domain");
+        return Res::Err("Src address must be an ETH address in case of \"EVM\" domain");
     }
 
     static Res TransferDomainDFISourceAddress() {
-        return Res::Err("Src address must be an ETH address in case of \"EVM\" domain");
+        return Res::Err("Src address must be a legacy or Bech32 address in case of \"DVM\" domain");
     }
 
     static Res TransferDomainInvalidSourceDomain() {
@@ -439,11 +439,11 @@ class DeFiErrors {
     }
 
     static Res TransferDomainETHDestinationAddress() {
-        return Res::Err("Dst address must not be an ETH address in case of \"DVM\" domain");
+        return Res::Err("Dst address must be an ETH address in case of \"EVM\" domain");
     }
 
     static Res TransferDomainDVMDestinationAddress() {
-        return Res::Err("Dst address must be an ETH address in case of \"EVM\" domain");
+        return Res::Err("Dst address must be a legacy or Bech32 address in case of \"DVM\" domain");
     }
 
     static Res TransferDomainInvalidDestinationDomain() {
diff --git a/src/masternodes/mn_checks.cpp b/src/masternodes/mn_checks.cpp
index e20c125202..0002f36d42 100644
--- a/src/masternodes/mn_checks.cpp
+++ b/src/masternodes/mn_checks.cpp
@@ -3975,6 +3975,28 @@ Res HasAuth(const CTransaction &tx, const CCoinsViewCache &coins, const CScript
     return DeFiErrors::InvalidAuth();
 }
 
+enum class DomainTransferType : uint8_t {
+    DVM,
+    EVM,
+};
+
+static bool DomainTransferAllowedAddress(const CScript &address, DomainTransferType type) {
+    CTxDestination dest;
+    if (ExtractDestination(address, dest)) {
+        if (type == DomainTransferType::DVM) {
+            if (dest.index() == PKHashType || dest.index() == WitV0KeyHashType) {
+                return true;
+            }
+        } else if (type == DomainTransferType::EVM) {
+            if (dest.index() == WitV16KeyEthHashType) {
+                return true;
+            }
+        }
+    }
+
+    return false;
+}
+
 Res ValidateTransferDomain(const CTransaction &tx,
                                    uint32_t height,
                                    const CCoinsViewCache &coins,
@@ -4009,9 +4031,15 @@ Res ValidateTransferDomain(const CTransaction &tx,
         // Check domain type
         if (src.domain == static_cast<uint8_t>(VMDomain::DVM)) {
             // Reject if source address is ETH address
-            if (ExtractDestination(src.address, dest)) {
-                if (dest.index() == WitV16KeyEthHashType) {
-                    return DeFiErrors::TransferDomainETHSourceAddress();
+            if (height < static_cast<uint32_t>(consensus.ChangiIntermediateHeight3)) {
+                if (ExtractDestination(src.address, dest)) {
+                    if (dest.index() == WitV16KeyEthHashType) {
+                        return DeFiErrors::TransferDomainDFISourceAddress();
+                    }
+                }
+            } else {
+                if (!DomainTransferAllowedAddress(src.address, DomainTransferType::DVM)) {
+                    return DeFiErrors::TransferDomainDFISourceAddress();
                 }
             }
             // Check for authorization on source address
@@ -4020,9 +4048,15 @@ Res ValidateTransferDomain(const CTransaction &tx,
                 return res;
         } else if (src.domain == static_cast<uint8_t>(VMDomain::EVM)) {
             // Reject if source address is DFI address
-            if (ExtractDestination(src.address, dest)) {
-                if (dest.index() != WitV16KeyEthHashType) {
-                    return DeFiErrors::TransferDomainDFISourceAddress();
+            if (height < static_cast<uint32_t>(consensus.ChangiIntermediateHeight3)) {
+                if (ExtractDestination(src.address, dest)) {
+                    if (dest.index() != WitV16KeyEthHashType) {
+                        return DeFiErrors::TransferDomainETHSourceAddress();
+                    }
+                }
+            } else {
+                if (!DomainTransferAllowedAddress(src.address, DomainTransferType::EVM)) {
+                    return DeFiErrors::TransferDomainETHSourceAddress();
                 }
             }
             // Check for authorization on source address
@@ -4036,16 +4070,28 @@ Res ValidateTransferDomain(const CTransaction &tx,
         // Check domain type
         if (dst.domain == static_cast<uint8_t>(VMDomain::DVM)) {
             // Reject if source address is ETH address
-            if (ExtractDestination(dst.address, dest)) {
-                if (dest.index() == WitV16KeyEthHashType) {
-                    return DeFiErrors::TransferDomainETHDestinationAddress();
+            if (height < static_cast<uint32_t>(consensus.ChangiIntermediateHeight3)) {
+                if (ExtractDestination(dst.address, dest)) {
+                    if (dest.index() == WitV16KeyEthHashType) {
+                        return DeFiErrors::TransferDomainDVMDestinationAddress();
+                    }
+                }
+            } else {
+                if (!DomainTransferAllowedAddress(dst.address, DomainTransferType::DVM)) {
+                    return DeFiErrors::TransferDomainDVMDestinationAddress();
                 }
             }
         } else if (dst.domain == static_cast<uint8_t>(VMDomain::EVM)) {
             // Reject if source address is DFI address
-            if (ExtractDestination(dst.address, dest)) {
-                if (dest.index() != WitV16KeyEthHashType) {
-                    return DeFiErrors::TransferDomainDVMDestinationAddress();
+            if (height < static_cast<uint32_t>(consensus.ChangiIntermediateHeight3)) {
+                if (ExtractDestination(dst.address, dest)) {
+                    if (dest.index() != WitV16KeyEthHashType) {
+                        return DeFiErrors::TransferDomainETHDestinationAddress();
+                    }
+                }
+            } else {
+                if (!DomainTransferAllowedAddress(dst.address, DomainTransferType::EVM)) {
+                    return DeFiErrors::TransferDomainETHDestinationAddress();
                 }
             }
         } else
diff --git a/test/functional/feature_evm.py b/test/functional/feature_evm.py
index f963e07b49..891dae9f72 100755
--- a/test/functional/feature_evm.py
+++ b/test/functional/feature_evm.py
@@ -20,8 +20,8 @@ def set_test_params(self):
         self.num_nodes = 2
         self.setup_clean_chain = True
         self.extra_args = [
-            ['-dummypos=0', '-txnotokens=0', '-amkheight=50', '-bayfrontheight=51', '-eunosheight=80', '-fortcanningheight=82', '-fortcanninghillheight=84', '-fortcanningroadheight=86', '-fortcanningcrunchheight=88', '-fortcanningspringheight=90', '-fortcanninggreatworldheight=94', '-fortcanningepilogueheight=96', '-grandcentralheight=101', '-nextnetworkupgradeheight=105', '-changiintermediateheight=105', '-subsidytest=1', '-txindex=1'],
-            ['-dummypos=0', '-txnotokens=0', '-amkheight=50', '-bayfrontheight=51', '-eunosheight=80', '-fortcanningheight=82', '-fortcanninghillheight=84', '-fortcanningroadheight=86', '-fortcanningcrunchheight=88', '-fortcanningspringheight=90', '-fortcanninggreatworldheight=94', '-fortcanningepilogueheight=96', '-grandcentralheight=101', '-nextnetworkupgradeheight=105', '-changiintermediateheight=105', '-subsidytest=1', '-txindex=1']
+            ['-dummypos=0', '-txnotokens=0', '-amkheight=50', '-bayfrontheight=51', '-eunosheight=80', '-fortcanningheight=82', '-fortcanninghillheight=84', '-fortcanningroadheight=86', '-fortcanningcrunchheight=88', '-fortcanningspringheight=90', '-fortcanninggreatworldheight=94', '-fortcanningepilogueheight=96', '-grandcentralheight=101', '-nextnetworkupgradeheight=105', '-changiintermediateheight=105', '-changiintermediate3height=105', '-subsidytest=1', '-txindex=1'],
+            ['-dummypos=0', '-txnotokens=0', '-amkheight=50', '-bayfrontheight=51', '-eunosheight=80', '-fortcanningheight=82', '-fortcanninghillheight=84', '-fortcanningroadheight=86', '-fortcanningcrunchheight=88', '-fortcanningspringheight=90', '-fortcanninggreatworldheight=94', '-fortcanningepilogueheight=96', '-grandcentralheight=101', '-nextnetworkupgradeheight=105', '-changiintermediateheight=105', '-changiintermediate3height=105', '-subsidytest=1', '-txindex=1']
         ]
 
     def test_tx_without_chainid(self, node, keypair):
@@ -120,7 +120,7 @@ def run_test(self):
         assert_raises_rpc_error(-5, "recipient (blablabla) does not refer to any valid address", self.nodes[0].transferdomain, [{"src": {"address":address, "amount":"100@DFI", "domain": 2}, "dst":{"address":"blablabla", "amount":"100@DFI", "domain": 3}}])
 
         # Check for valid values DVM->EVM in transferdomain rpc
-        assert_raises_rpc_error(-32600, "Src address must not be an ETH address in case of \"DVM\" domain", self.nodes[0].transferdomain, [{"src": {"address":eth_address, "amount":"100@DFI", "domain": 2}, "dst":{"address":eth_address, "amount":"100@DFI", "domain": 3}}])
+        assert_raises_rpc_error(-32600, "Src address must be a legacy or Bech32 address in case of \"DVM\" domain", self.nodes[0].transferdomain, [{"src": {"address":eth_address, "amount":"100@DFI", "domain": 2}, "dst":{"address":eth_address, "amount":"100@DFI", "domain": 3}}])
         assert_raises_rpc_error(-32600, "Dst address must be an ETH address in case of \"EVM\" domain", self.nodes[0].transferdomain, [{"src": {"address":address, "amount":"100@DFI", "domain": 2}, "dst":{"address":address, "amount":"100@DFI", "domain": 3}}])
         assert_raises_rpc_error(-32600, "Cannot transfer inside same domain", self.nodes[0].transferdomain, [{"src": {"address":address, "amount":"100@DFI", "domain": 2}, "dst":{"address":eth_address, "amount":"100@DFI", "domain": 2}}])
         assert_raises_rpc_error(-32600, "Source amount must be equal to destination amount", self.nodes[0].transferdomain, [{"src": {"address":address, "amount":"100@DFI", "domain": 2}, "dst":{"address":eth_address, "amount":"101@DFI", "domain": 3}}])
@@ -156,7 +156,7 @@ def run_test(self):
 
         # Check for valid values EVM->DVM in transferdomain rpc
         assert_raises_rpc_error(-32600, "Src address must be an ETH address in case of \"EVM\" domain", self.nodes[0].transferdomain, [{"src": {"address":address, "amount":"100@DFI", "domain": 3}, "dst":{"address":address, "amount":"100@DFI", "domain": 2}}])
-        assert_raises_rpc_error(-32600, "Dst address must not be an ETH address in case of \"DVM\" domain", self.nodes[0].transferdomain, [{"src": {"address":eth_address, "amount":"100@DFI", "domain": 3}, "dst":{"address":eth_address, "amount":"100@DFI", "domain": 2}}])
+        assert_raises_rpc_error(-32600, "Dst address must be a legacy or Bech32 address in case of \"DVM\" domain", self.nodes[0].transferdomain, [{"src": {"address":eth_address, "amount":"100@DFI", "domain": 3}, "dst":{"address":eth_address, "amount":"100@DFI", "domain": 2}}])
         assert_raises_rpc_error(-32600, "Cannot transfer inside same domain", self.nodes[0].transferdomain, [{"src": {"address":eth_address, "amount":"100@DFI", "domain": 3}, "dst":{"address":address, "amount":"100@DFI", "domain": 3}}])
         assert_raises_rpc_error(-32600, "Source amount must be equal to destination amount", self.nodes[0].transferdomain, [{"src": {"address":eth_address, "amount":"100@DFI", "domain": 3}, "dst":{"address":address, "amount":"101@DFI", "domain": 2}}])
         assert_raises_rpc_error(-32600, "For transferdomain, only DFI token is currently supported", self.nodes[0].transferdomain, [{"src": {"address":eth_address, "amount":"100@BTC", "domain": 3}, "dst":{"address":address, "amount":"100@DFI", "domain": 2}}])