diff --git a/apitest/src/test/java/bisq/apitest/method/wallet/BtcTxFeeRateTest.java b/apitest/src/test/java/bisq/apitest/method/wallet/BtcTxFeeRateTest.java
index 07b56eb7916..d5a4e4ef340 100644
--- a/apitest/src/test/java/bisq/apitest/method/wallet/BtcTxFeeRateTest.java
+++ b/apitest/src/test/java/bisq/apitest/method/wallet/BtcTxFeeRateTest.java
@@ -2,6 +2,8 @@
 
 import bisq.core.api.model.TxFeeRateInfo;
 
+import io.grpc.StatusRuntimeException;
+
 import lombok.extern.slf4j.Slf4j;
 
 import org.junit.jupiter.api.AfterAll;
@@ -15,8 +17,11 @@
 import static bisq.apitest.Scaffold.BitcoinCoreApp.bitcoind;
 import static bisq.apitest.config.BisqAppConfig.alicedaemon;
 import static bisq.apitest.config.BisqAppConfig.seednode;
+import static bisq.common.config.BaseCurrencyNetwork.BTC_DAO_REGTEST;
+import static java.lang.String.format;
 import static org.junit.jupiter.api.Assertions.assertEquals;
 import static org.junit.jupiter.api.Assertions.assertFalse;
+import static org.junit.jupiter.api.Assertions.assertThrows;
 import static org.junit.jupiter.api.Assertions.assertTrue;
 import static org.junit.jupiter.api.MethodOrderer.OrderAnnotation;
 
@@ -50,17 +55,28 @@ public void testGetTxFeeRate(final TestInfo testInfo) {
 
     @Test
     @Order(2)
-    public void testSetTxFeeRate(final TestInfo testInfo) {
-        TxFeeRateInfo txFeeRateInfo = setTxFeeRate(alicedaemon, 10);
+    public void testSetInvalidTxFeeRateShouldThrowException(final TestInfo testInfo) {
+        Throwable exception = assertThrows(StatusRuntimeException.class, () ->
+                setTxFeeRate(alicedaemon, 10));
+        String expectedExceptionMessage =
+                format("UNKNOWN: tx fee rate preference must be >= %d sats/byte",
+                        BTC_DAO_REGTEST.getDefaultMinFeePerVbyte());
+        assertEquals(expectedExceptionMessage, exception.getMessage());
+    }
+
+    @Test
+    @Order(3)
+    public void testSetValidTxFeeRate(final TestInfo testInfo) {
+        TxFeeRateInfo txFeeRateInfo = setTxFeeRate(alicedaemon, 15);
         log.debug("{} -> Fee rates with custom preference: {}", testName(testInfo), txFeeRateInfo);
 
         assertTrue(txFeeRateInfo.isUseCustomTxFeeRate());
-        assertEquals(10, txFeeRateInfo.getCustomTxFeeRate());
+        assertEquals(15, txFeeRateInfo.getCustomTxFeeRate());
         assertTrue(txFeeRateInfo.getFeeServiceRate() > 0);
     }
 
     @Test
-    @Order(3)
+    @Order(4)
     public void testUnsetTxFeeRate(final TestInfo testInfo) {
         TxFeeRateInfo txFeeRateInfo = unsetTxFeeRate(alicedaemon);
         log.debug("{} -> Fee rate with no preference: {}", testName(testInfo), txFeeRateInfo);
diff --git a/apitest/src/test/java/bisq/apitest/scenario/WalletTest.java b/apitest/src/test/java/bisq/apitest/scenario/WalletTest.java
index 0fff4bf694d..a3ebba4ca2f 100644
--- a/apitest/src/test/java/bisq/apitest/scenario/WalletTest.java
+++ b/apitest/src/test/java/bisq/apitest/scenario/WalletTest.java
@@ -104,7 +104,8 @@ public void testTxFeeRateMethods(final TestInfo testInfo) {
         BtcTxFeeRateTest test = new BtcTxFeeRateTest();
 
         test.testGetTxFeeRate(testInfo);
-        test.testSetTxFeeRate(testInfo);
+        test.testSetInvalidTxFeeRateShouldThrowException(testInfo);
+        test.testSetValidTxFeeRate(testInfo);
         test.testUnsetTxFeeRate(testInfo);
     }
 
diff --git a/core/src/main/java/bisq/core/api/CoreWalletsService.java b/core/src/main/java/bisq/core/api/CoreWalletsService.java
index 0ef5a22d2fd..b048fcefe97 100644
--- a/core/src/main/java/bisq/core/api/CoreWalletsService.java
+++ b/core/src/main/java/bisq/core/api/CoreWalletsService.java
@@ -79,6 +79,7 @@
 
 import javax.annotation.Nullable;
 
+import static bisq.common.config.BaseCurrencyNetwork.BTC_DAO_REGTEST;
 import static bisq.core.btc.wallet.Restrictions.getMinNonDustOutput;
 import static bisq.core.util.ParsingUtils.parseToCoin;
 import static java.lang.String.format;
@@ -311,8 +312,13 @@ public void onFailure(Throwable t) {
 
     void setTxFeeRatePreference(long txFeeRate,
                                 ResultHandler resultHandler) {
-        if (txFeeRate <= 0)
-            throw new IllegalStateException("cannot create transactions without fees");
+        long minFeePerVbyte = BTC_DAO_REGTEST.getDefaultMinFeePerVbyte();
+        // TODO Replace line above with line below, after commit
+        //  c33ac1b9834fb9f7f14e553d09776f94efc9d13d is merged.
+        // long minFeePerVbyte = feeService.getMinFeePerVByte();
+        if (txFeeRate < minFeePerVbyte)
+            throw new IllegalStateException(
+                    format("tx fee rate preference must be >= %d sats/byte", minFeePerVbyte));
 
         preferences.setUseCustomWithdrawalTxFee(true);
         Coin satsPerByte = Coin.valueOf(txFeeRate);
diff --git a/core/src/main/java/bisq/core/api/model/TxFeeRateInfo.java b/core/src/main/java/bisq/core/api/model/TxFeeRateInfo.java
index d6014ddce30..330eb163584 100644
--- a/core/src/main/java/bisq/core/api/model/TxFeeRateInfo.java
+++ b/core/src/main/java/bisq/core/api/model/TxFeeRateInfo.java
@@ -67,8 +67,8 @@ public static TxFeeRateInfo fromProto(bisq.proto.grpc.TxFeeRateInfo proto) {
     public String toString() {
         return "TxFeeRateInfo{" + "\n" +
                 "  useCustomTxFeeRate=" + useCustomTxFeeRate + "\n" +
-                ", customTxFeeRate=" + customTxFeeRate + "sats/byte" + "\n" +
-                ", feeServiceRate=" + feeServiceRate + "sats/byte" + "\n" +
+                ", customTxFeeRate=" + customTxFeeRate + " sats/byte" + "\n" +
+                ", feeServiceRate=" + feeServiceRate + " sats/byte" + "\n" +
                 ", lastFeeServiceRequestTs=" + lastFeeServiceRequestTs + "\n" +
                 '}';
     }