diff --git a/package.json b/package.json
index 5429ce936..243be9a41 100644
--- a/package.json
+++ b/package.json
@@ -42,7 +42,7 @@
     "url": "https://github.com/bitpay/copay/issues"
   },
   "dependencies": {
-    "bitcore-wallet-client": "2.6.0",
+    "bitcore-wallet-client": "2.7.0",
     "express": "^4.11.2",
     "fs": "0.0.2",
     "grunt": "^0.4.5",
diff --git a/src/js/controllers/index.js b/src/js/controllers/index.js
index cce4b547f..bc1daeaa4 100644
--- a/src/js/controllers/index.js
+++ b/src/js/controllers/index.js
@@ -135,7 +135,7 @@ angular.module('copayApp.controllers').controller('indexController', function($r
       self.isPrivKeyEncrypted = fc.isPrivKeyEncrypted();
       self.externalSource = fc.getPrivKeyExternalSourceName();
       self.account = fc.credentials.account;
-      self.incorrectDerivation = fc.incorrectDerivation;
+      self.incorrectDerivation = fc.keyDerivationOk === false;
 
       if (self.externalSource == 'trezor')
         self.account++;
@@ -1388,6 +1388,11 @@ angular.module('copayApp.controllers').controller('indexController', function($r
     });
   };
 
+  self.isInFocus = function(walletId) {
+    var fc = profileService.focusedClient;
+    return fc && fc.credentials.walletId == walletId;
+  };
+
   self.setAddressbook = function(ab) {
     if (ab) {
       self.addressbook = ab;
@@ -1408,12 +1413,17 @@ angular.module('copayApp.controllers').controller('indexController', function($r
     self.tab = 'walletHome';
   });
 
-  $rootScope.$on('Local/ValidatingWallet', function() {
-    ongoingProcess.set('validatingWallet', true);
+  $rootScope.$on('Local/ValidatingWallet', function(ev, walletId) {
+    if (self.isInFocus(walletId)) {
+      ongoingProcess.set('validatingWallet', true);
+    }
   });
 
-  $rootScope.$on('Local/ProfileBound', function() {
-    ongoingProcess.set('validatingWallet', false);
+  $rootScope.$on('Local/ValidatingWalletEnded', function(ev, walletId, isOK) {
+    if (self.isInFocus(walletId)) {
+      ongoingProcess.set('validatingWallet', false);
+      self.incorrectDerivation = isOK === false;
+    }
   });
 
   $rootScope.$on('Local/ClearHistory', function(event) {
@@ -1475,8 +1485,7 @@ angular.module('copayApp.controllers').controller('indexController', function($r
   });
 
   $rootScope.$on('Local/WalletCompleted', function(event, walletId) {
-    var fc = profileService.focusedClient;
-    if (fc && fc.credentials.walletId == walletId) {
+    if (self.isInFocus(walletId)) {
       // reset main wallet variables
       self.setFocusedWallet();
       go.walletHome();
diff --git a/src/js/models/profile.js b/src/js/models/profile.js
index aaa5f4a4c..aea506864 100644
--- a/src/js/models/profile.js
+++ b/src/js/models/profile.js
@@ -57,6 +57,12 @@ Profile.prototype.isChecked = function(ua, walletId) {
   return !!(this.checkedUA == ua && this.checked[walletId]);
 };
 
+
+Profile.prototype.isDeviceChecked = function(ua) {
+  return this.checkedUA == ua;
+};
+
+
 Profile.prototype.setChecked = function(ua, walletId) {
   if (this.checkedUA != ua) {
     this.checkedUA = ua;
diff --git a/src/js/services/profileService.js b/src/js/services/profileService.js
index 6daf48900..25f4a42cd 100644
--- a/src/js/services/profileService.js
+++ b/src/js/services/profileService.js
@@ -75,11 +75,6 @@ angular.module('copayApp.services')
       root.walletClients[walletId].started = true;
       root.walletClients[walletId].doNotVerifyPayPro = isChromeApp;
 
-      if (client.incorrectDerivation) {
-        $log.warn('Key Derivation failed for wallet:' + walletId);
-        storageService.clearLastAddress(walletId, function() {});
-      }
-
       client.removeAllListeners();
       client.on('report', function(n) {
         $log.info('BWC Report:' + n);
@@ -121,6 +116,29 @@ angular.module('copayApp.services')
       return true;
     };
 
+    root.runValidation = function(client) {
+      var skipDeviceValidation = root.profile.isDeviceChecked(platformInfo.ua);
+      var walletId = client.credentials.walletId;
+
+      $timeout(function() {
+
+        $log.debug('ValidatingWallet: ' + walletId + ' device validation:' + skipDeviceValidation);
+        $rootScope.$emit('Local/ValidatingWallet', walletId);
+
+        client.validateKeyDerivation({
+          skipDeviceValidation: skipDeviceValidation,
+        }, function(err, isOK) {
+          $rootScope.$emit('Local/ValidatingWalletEnded', walletId, isOK);
+
+          if (isOK) {
+            root.profile.setChecked(platformInfo.ua, walletId);
+          } else {
+            $log.warn('Key Derivation failed for wallet:' + walletId);
+            storageService.clearLastAddress(walletId, function() {});
+          }
+        });
+      }, 10);
+    };
 
     // Used when reading wallets from the profile
     root.bindWallet = function(credentials, cb) {
@@ -135,22 +153,18 @@ angular.module('copayApp.services')
         return ((config.bwsFor && config.bwsFor[walletId]) || defaults.bws.url);
       };
 
+
+      var client = bwcService.getClient(JSON.stringify(credentials), {
+        bwsurl: getBWSURL(credentials.walletId),
+      });
+
       var skipKeyValidation = root.profile.isChecked(platformInfo.ua, credentials.walletId);
-      if (!skipKeyValidation) {
-        $rootScope.$emit('Local/ValidatingWallet');
-      }
-      $timeout(function() {
-        $log.info('Binding wallet:' + credentials.walletId + ' Validating?:' + !skipKeyValidation);
-        var client = bwcService.getClient(JSON.stringify(credentials), {
-          bwsurl: getBWSURL(credentials.walletId),
-          skipKeyValidation: skipKeyValidation,
-        });
 
-        if (!skipKeyValidation && !client.incorrectDerivation)
-          root.profile.setChecked(platformInfo.ua, credentials.walletId);
+      if (!skipKeyValidation) 
+        root.runValidation(client);
 
-        return cb(null, root.bindWalletClient(client));
-      }, skipKeyValidation ? 50 : 0);
+      $log.info('Binding wallet:' + credentials.walletId + ' Validating?:' + !skipKeyValidation);
+      return cb(null, root.bindWalletClient(client));
     };
 
     root.bindProfile = function(profile, cb) {