diff --git a/go.mod b/go.mod
index 5e5cfff26..df84059f8 100644
--- a/go.mod
+++ b/go.mod
@@ -3,7 +3,7 @@ module github.com/SkycoinProject/skywire-mainnet
 go 1.13
 
 require (
-	github.com/SkycoinProject/dmsg v0.0.0-20200304081751-cf4d40f5428f
+	github.com/SkycoinProject/dmsg v0.0.0-20200304115237-130cc9d98ffb
 	github.com/SkycoinProject/skycoin v0.27.0
 	github.com/SkycoinProject/yamux v0.0.0-20191213015001-a36efeefbf6a
 	github.com/armon/go-socks5 v0.0.0-20160902184237-e75332964ef5
diff --git a/go.sum b/go.sum
index faf572017..7220fb741 100644
--- a/go.sum
+++ b/go.sum
@@ -3,6 +3,8 @@ github.com/BurntSushi/toml v0.3.1/go.mod h1:xHWCNGjB5oqiDr8zfno3MHue2Ht5sIBksp03
 github.com/OneOfOne/xxhash v1.2.2/go.mod h1:HSdplMjZKSmBqAxg5vPj2TmRDmfkzw+cTzAElWljhcU=
 github.com/SkycoinProject/dmsg v0.0.0-20200304081751-cf4d40f5428f h1:NvirKQPrsp9xrJItJfmRwhfY7atS/AuzdGmJ76m703M=
 github.com/SkycoinProject/dmsg v0.0.0-20200304081751-cf4d40f5428f/go.mod h1:DzykXMLlx6Fx0fGjZsCIRas/MIvxW8DZpmDA6f2nCRk=
+github.com/SkycoinProject/dmsg v0.0.0-20200304115237-130cc9d98ffb h1:UPgo4kZ/nFV4jI9djG0esOyZjda4IZGZpGl/ntYRyuM=
+github.com/SkycoinProject/dmsg v0.0.0-20200304115237-130cc9d98ffb/go.mod h1:DzykXMLlx6Fx0fGjZsCIRas/MIvxW8DZpmDA6f2nCRk=
 github.com/SkycoinProject/skycoin v0.26.0/go.mod h1:xqPLOKh5B6GBZlGA7B5IJfQmCy7mwimD9NlqxR3gMXo=
 github.com/SkycoinProject/skycoin v0.27.0 h1:N3IHxj8ossHOcsxLYOYugT+OaELLncYHJHxbbYLPPmY=
 github.com/SkycoinProject/skycoin v0.27.0/go.mod h1:xqPLOKh5B6GBZlGA7B5IJfQmCy7mwimD9NlqxR3gMXo=
diff --git a/pkg/transport/handshake.go b/pkg/transport/handshake.go
index cf9d52a88..e18dc02e3 100644
--- a/pkg/transport/handshake.go
+++ b/pkg/transport/handshake.go
@@ -6,8 +6,10 @@ import (
 	"errors"
 	"fmt"
 	"io"
+	"net/http"
 
 	"github.com/SkycoinProject/dmsg/cipher"
+	"github.com/SkycoinProject/dmsg/httputil"
 
 	"github.com/SkycoinProject/skywire-mainnet/pkg/snet"
 )
@@ -130,7 +132,12 @@ func MakeSettlementHS(init bool) SettlementHS {
 
 		// Ensure transport is registered.
 		if err := dc.RegisterTransports(ctx, recvSE); err != nil {
-			log.WithError(err).Error("Failed to register transports")
+			if httpErr, ok := err.(*httputil.HTTPError); ok && httpErr.Status == http.StatusConflict {
+				log.WithError(err).Debug("An expected error occurred while trying to register transport.")
+			} else {
+				// TODO(evanlinjin): Once tpDisc is updated, this should return error and result in failed HS.
+				log.WithError(err).Error("Failed to register transport.")
+			}
 		}
 
 		// inform initiating visor.
diff --git a/vendor/github.com/SkycoinProject/dmsg/httputil/error.go b/vendor/github.com/SkycoinProject/dmsg/httputil/error.go
index 6060dd66a..5b545990a 100644
--- a/vendor/github.com/SkycoinProject/dmsg/httputil/error.go
+++ b/vendor/github.com/SkycoinProject/dmsg/httputil/error.go
@@ -27,7 +27,7 @@ func ErrorFromResp(resp *http.Response) error {
 
 // Error returns the error message.
 func (e *HTTPError) Error() string {
-	return fmt.Sprintf("(%d)%s: %v", e.Status, http.StatusText(e.Status), e.Body)
+	return fmt.Sprintf("%d %s: %v", e.Status, http.StatusText(e.Status), e.Body)
 }
 
 // Timeout implements net.Error
diff --git a/vendor/modules.txt b/vendor/modules.txt
index 176ebd069..2ece7f09d 100644
--- a/vendor/modules.txt
+++ b/vendor/modules.txt
@@ -1,4 +1,4 @@
-# github.com/SkycoinProject/dmsg v0.0.0-20200304081751-cf4d40f5428f
+# github.com/SkycoinProject/dmsg v0.0.0-20200304115237-130cc9d98ffb
 github.com/SkycoinProject/dmsg
 github.com/SkycoinProject/dmsg/cipher
 github.com/SkycoinProject/dmsg/disc