diff --git a/core/tests/core.rs b/core/tests/core.rs
index 4c9437d6..faea3e20 100644
--- a/core/tests/core.rs
+++ b/core/tests/core.rs
@@ -96,7 +96,6 @@ fn tx_double_ser_deser() {
 }
 
 #[test]
-#[should_panic(expected = "Keychain Error")]
 fn test_zero_commit_fails() {
 	test_setup();
 	let keychain = ExtKeychain::from_random_seed(false).unwrap();
@@ -104,13 +103,13 @@ fn test_zero_commit_fails() {
 	let key_id1 = ExtKeychain::derive_key_id(1, 1, 0, 0, 0);
 
 	// blinding should fail as signing with a zero r*G shouldn't work
-	build::transaction(
+	let res = build::transaction(
 		KernelFeatures::Plain { fee: 0 },
 		vec![input(10, key_id1.clone()), output(10, key_id1)],
 		&keychain,
 		&builder,
-	)
-	.unwrap();
+	);
+	assert!(res.is_err());
 }
 
 fn verifier_cache() -> Arc<RwLock<dyn VerifierCache>> {
diff --git a/p2p/tests/peer_handshake.rs b/p2p/tests/peer_handshake.rs
index 6c72a89a..d34e6cd9 100644
--- a/p2p/tests/peer_handshake.rs
+++ b/p2p/tests/peer_handshake.rs
@@ -38,7 +38,8 @@ fn open_port() -> u16 {
 
 // Setup test with AutomatedTesting chain_type;
 fn test_setup() {
-	global::set_local_chain_type(global::ChainTypes::AutomatedTesting);
+	// Set "global" chain type here as we spawn peer threads for read/write.
+	global::init_global_chain_type(global::ChainTypes::AutomatedTesting);
 	util::init_test_logger();
 }
 
@@ -69,11 +70,7 @@ fn peer_handshake() {
 	);
 
 	let p2p_inner = server.clone();
-	let _ = thread::spawn(move || {
-		// Test setup relies on thread local for chain_type so make sure we setup here.
-		test_setup();
-		p2p_inner.listen()
-	});
+	let _ = thread::spawn(move || p2p_inner.listen());
 
 	thread::sleep(time::Duration::from_secs(1));