diff --git a/libi2pd/Destination.cpp b/libi2pd/Destination.cpp
index 318e7cbc..3a693980 100644
--- a/libi2pd/Destination.cpp
+++ b/libi2pd/Destination.cpp
@@ -777,12 +777,20 @@ namespace client
 		m_DatagramDestination (nullptr), m_RefCounter (0),
 		m_ReadyChecker(GetService())
 	{
+		i2p::data::CryptoKeyType keyType = GetIdentity ()->GetCryptoKeyType ();
+		// extract encryption type params for LS2
+		if (GetLeaseSetType () == i2p::data::NETDB_STORE_TYPE_STANDARD_LEASESET2 && params)
+		{
+			auto it = params->find (I2CP_PARAM_LEASESET_ENCRYPTION_TYPE);
+			if (it != params->end ())
+				keyType = std::stoi(it->second);
+		}		
+	
 		if (isPublic)
-			PersistTemporaryKeys ();
+			PersistTemporaryKeys (keyType);
 		else
-			i2p::data::PrivateKeys::GenerateCryptoKeyPair(GetIdentity ()->GetCryptoKeyType (),
-				m_EncryptionPrivateKey, m_EncryptionPublicKey);
-		m_Decryptor = m_Keys.CreateDecryptor (m_EncryptionPrivateKey);
+			i2p::data::PrivateKeys::GenerateCryptoKeyPair (keyType, m_EncryptionPrivateKey, m_EncryptionPublicKey);
+		m_Decryptor = i2p::data::PrivateKeys::CreateDecryptor (keyType, m_EncryptionPrivateKey);
 		if (isPublic)
 			LogPrint (eLogInfo, "Destination: Local address ", GetIdentHash().ToBase32 (), " created");
 
@@ -1000,7 +1008,7 @@ namespace client
 		return ret;
 	}
 
-	void ClientDestination::PersistTemporaryKeys ()
+	void ClientDestination::PersistTemporaryKeys (i2p::data::CryptoKeyType keyType)
 	{
 		std::string ident = GetIdentHash().ToBase32();
 		std::string path  = i2p::fs::DataDirPath("destinations", (ident + ".dat"));
@@ -1012,9 +1020,10 @@ namespace client
 			return;
 		}
 
-		LogPrint (eLogInfo, "Destination: Creating new temporary keys for address ", ident, ".b32.i2p");
-		i2p::data::PrivateKeys::GenerateCryptoKeyPair(GetIdentity ()->GetCryptoKeyType (),
-				m_EncryptionPrivateKey, m_EncryptionPublicKey);
+		LogPrint (eLogInfo, "Destination: Creating new temporary keys of type ", (int)keyType, " for address ", ident, ".b32.i2p");
+		memset (m_EncryptionPrivateKey, 0, 256);
+		memset (m_EncryptionPublicKey, 0, 256);	
+		i2p::data::PrivateKeys::GenerateCryptoKeyPair (keyType, m_EncryptionPrivateKey, m_EncryptionPublicKey);
 
 		std::ofstream f1 (path, std::ofstream::binary | std::ofstream::out);
 		if (f1) {
diff --git a/libi2pd/Destination.h b/libi2pd/Destination.h
index c098708c..a2d20c16 100644
--- a/libi2pd/Destination.h
+++ b/libi2pd/Destination.h
@@ -54,6 +54,7 @@ namespace client
 	const char I2CP_PARAM_OUTBOUND_NICKNAME[] = "outbound.nickname";
 	const char I2CP_PARAM_LEASESET_TYPE[] = "i2cp.leaseSetType";
 	const int DEFAULT_LEASESET_TYPE = 1;		
+	const char I2CP_PARAM_LEASESET_ENCRYPTION_TYPE[] = "i2cp.leaseSetEncType";
 
 	// latency
 	const char I2CP_PARAM_MIN_TUNNEL_LATENCY[] = "latency.min";
@@ -233,7 +234,7 @@ namespace client
 
 			std::shared_ptr<ClientDestination> GetSharedFromThis ()
 			{ return std::static_pointer_cast<ClientDestination>(shared_from_this ()); }
-			void PersistTemporaryKeys ();
+			void PersistTemporaryKeys (i2p::data::CryptoKeyType keyType);
 #ifdef I2LUA
 			void ScheduleCheckForReady(ReadyPromise * p);
 			void HandleCheckForReady(const boost::system::error_code & ecode, ReadyPromise * p);
diff --git a/libi2pd_client/ClientContext.cpp b/libi2pd_client/ClientContext.cpp
index ad561b19..c69e419e 100644
--- a/libi2pd_client/ClientContext.cpp
+++ b/libi2pd_client/ClientContext.cpp
@@ -375,6 +375,12 @@ namespace client
         return section.second.get (boost::property_tree::ptree::path_type (name, '/'), std::to_string (value));
 	}
 
+	template<typename Section>
+	std::string ClientContext::GetI2CPStringOption (const Section& section, const std::string& name, const std::string& value) const
+	{
+        return section.second.get (boost::property_tree::ptree::path_type (name, '/'), value);
+	}
+
 	template<typename Section>
 	void ClientContext::ReadI2CPOptions (const Section& section, std::map<std::string, std::string>& options) const
 	{
@@ -383,10 +389,12 @@ namespace client
 		options[I2CP_PARAM_INBOUND_TUNNELS_QUANTITY] = GetI2CPOption (section, I2CP_PARAM_INBOUND_TUNNELS_QUANTITY, DEFAULT_INBOUND_TUNNELS_QUANTITY);
 		options[I2CP_PARAM_OUTBOUND_TUNNELS_QUANTITY] = GetI2CPOption (section, I2CP_PARAM_OUTBOUND_TUNNELS_QUANTITY, DEFAULT_OUTBOUND_TUNNELS_QUANTITY);
 		options[I2CP_PARAM_TAGS_TO_SEND] = GetI2CPOption (section, I2CP_PARAM_TAGS_TO_SEND, DEFAULT_TAGS_TO_SEND);
-		options[I2CP_PARAM_LEASESET_TYPE] = GetI2CPOption(section, I2CP_PARAM_LEASESET_TYPE, DEFAULT_LEASESET_TYPE);
 		options[I2CP_PARAM_MIN_TUNNEL_LATENCY] = GetI2CPOption(section, I2CP_PARAM_MIN_TUNNEL_LATENCY, DEFAULT_MIN_TUNNEL_LATENCY);
 		options[I2CP_PARAM_MAX_TUNNEL_LATENCY] = GetI2CPOption(section, I2CP_PARAM_MAX_TUNNEL_LATENCY, DEFAULT_MAX_TUNNEL_LATENCY);
 		options[I2CP_PARAM_STREAMING_INITIAL_ACK_DELAY] = GetI2CPOption(section, I2CP_PARAM_STREAMING_INITIAL_ACK_DELAY, DEFAULT_INITIAL_ACK_DELAY); 
+		options[I2CP_PARAM_LEASESET_TYPE] = GetI2CPOption(section, I2CP_PARAM_LEASESET_TYPE, DEFAULT_LEASESET_TYPE);
+		std::string encType = GetI2CPStringOption(section, I2CP_PARAM_LEASESET_ENCRYPTION_TYPE, "");
+		if (encType.length () > 0) options[I2CP_PARAM_LEASESET_ENCRYPTION_TYPE] = encType;		
 	}
 
 	void ClientContext::ReadI2CPOptionsFromConfig (const std::string& prefix, std::map<std::string, std::string>& options) const
diff --git a/libi2pd_client/ClientContext.h b/libi2pd_client/ClientContext.h
index af9bebb2..71e052c3 100644
--- a/libi2pd_client/ClientContext.h
+++ b/libi2pd_client/ClientContext.h
@@ -93,6 +93,8 @@ namespace client
 			template<typename Section, typename Type>
 			std::string GetI2CPOption (const Section& section, const std::string& name, const Type& value) const;
 			template<typename Section>
+			std::string GetI2CPStringOption (const Section& section, const std::string& name, const std::string& value) const; // GetI2CPOption with string default value
+			template<typename Section>
 			void ReadI2CPOptions (const Section& section, std::map<std::string, std::string>& options) const; // for tunnels
 			void ReadI2CPOptionsFromConfig (const std::string& prefix, std::map<std::string, std::string>& options) const; // for HTTP and SOCKS proxy