diff --git a/peer/peer.go b/peer/peer.go
index 8f136fcfe..0f90c7c9d 100644
--- a/peer/peer.go
+++ b/peer/peer.go
@@ -7,6 +7,7 @@ package peer
 import (
 	"bytes"
 	"container/list"
+	"errors"
 	"fmt"
 	"io"
 	prand "math/rand"
@@ -974,12 +975,10 @@ func (p *Peer) PushRejectMsg(command string, code wire.RejectCode, reason string
 // handleVersionMsg is invoked when a peer receives a version bitcoin message
 // and is used to negotiate the protocol version details as well as kick start
 // the communications.
-func (p *Peer) handleVersionMsg(msg *wire.MsgVersion) {
+func (p *Peer) handleVersionMsg(msg *wire.MsgVersion) error {
 	// Detect self connections.
 	if !allowSelfConns && sentNonces.Exists(msg.Nonce) {
-		log.Debugf("Disconnecting peer connected to self %s", p)
-		p.Disconnect()
-		return
+		return errors.New("disconnecting peer connected to self")
 	}
 
 	// Notify and disconnect clients that have a protocol version that is
@@ -992,25 +991,19 @@ func (p *Peer) handleVersionMsg(msg *wire.MsgVersion) {
 			wire.MultipleAddressVersion)
 		p.PushRejectMsg(msg.Command(), wire.RejectObsolete, reason,
 			nil, true)
-		p.Disconnect()
-		return
+		return errors.New(reason)
 	}
 
 	// Limit to one version message per peer.
 	// No read lock is necessary because versionKnown is not written to in any
 	// other goroutine
 	if p.versionKnown {
-		log.Errorf("Only one version message per peer is allowed %s.",
-			p)
-
 		// Send an reject message indicating the version message was
 		// incorrectly sent twice and wait for the message to be sent
 		// before disconnecting.
 		p.PushRejectMsg(msg.Command(), wire.RejectDuplicate,
 			"duplicate version message", nil, true)
-
-		p.Disconnect()
-		return
+		return errors.New("only one version message per peer is allowed")
 	}
 
 	// Updating a bunch of stats.
@@ -1043,24 +1036,20 @@ func (p *Peer) handleVersionMsg(msg *wire.MsgVersion) {
 		// at connection time and no point recomputing.
 		na, err := newNetAddress(p.conn.RemoteAddr(), p.services)
 		if err != nil {
-			log.Errorf("Can't get remote address: %v", err)
-			p.Disconnect()
-			return
+			return err
 		}
 		p.na = na
 
 		// Send version.
 		err = p.pushVersionMsg()
 		if err != nil {
-			log.Errorf("Can't send version message to %s: %v",
-				p, err)
-			p.Disconnect()
-			return
+			return err
 		}
 	}
 
 	// Send verack.
 	p.QueueMessage(wire.NewMsgVerAck(), nil)
+	return nil
 }
 
 // isValidBIP0111 is a helper function for the bloom filter commands to check
@@ -1527,7 +1516,13 @@ out:
 		p.stallControl <- stallControlMsg{sccHandlerStart, rmsg}
 		switch msg := rmsg.(type) {
 		case *wire.MsgVersion:
-			p.handleVersionMsg(msg)
+			err := p.handleVersionMsg(msg)
+			if err != nil {
+				log.Debugf("New peer %v - error negotiating protocol: %v",
+					p, err)
+				p.Disconnect()
+				break out
+			}
 			if p.cfg.Listeners.OnVersion != nil {
 				p.cfg.Listeners.OnVersion(p, msg)
 			}