diff --git a/src/simplewallet/simplewallet.cpp b/src/simplewallet/simplewallet.cpp
index 04170df6..46e70567 100644
--- a/src/simplewallet/simplewallet.cpp
+++ b/src/simplewallet/simplewallet.cpp
@@ -964,6 +964,37 @@ bool simple_wallet::generate_from_json(const boost::program_options::variables_m
   return r;
 }
 
+static bool is_local_daemon(const std::string &address)
+{
+  // extract host
+  epee::net_utils::http::url_content u_c;
+  if (!epee::net_utils::parse_url(address, u_c))
+  {
+    LOG_PRINT_L1("Failed to determine whether daemon is local, assuming not");
+    return false;
+  }
+  if (u_c.host.empty())
+  {
+    LOG_PRINT_L1("Failed to determine whether daemon is local, assuming not");
+    return false;
+  }
+
+  // resolve to IP
+  boost::asio::io_service io_service;
+  boost::asio::ip::tcp::resolver resolver(io_service);
+  boost::asio::ip::tcp::resolver::query query(u_c.host, "");
+  boost::asio::ip::tcp::resolver::iterator i = resolver.resolve(query);
+  while (i != boost::asio::ip::tcp::resolver::iterator())
+  {
+    const boost::asio::ip::tcp::endpoint &ep = *i;
+    if (ep.address().is_loopback())
+      return true;
+    ++i;
+  }
+
+  return false;
+}
+
 //----------------------------------------------------------------------------------------------------
 bool simple_wallet::init(const boost::program_options::variables_map& vm)
 {
@@ -999,6 +1030,17 @@ bool simple_wallet::init(const boost::program_options::variables_map& vm)
   if (m_daemon_address.empty())
     m_daemon_address = std::string("http://") + m_daemon_host + ":" + std::to_string(m_daemon_port);
 
+  // set --trusted-daemon if local
+  try
+  {
+    if (is_local_daemon(m_daemon_address))
+    {
+      LOG_PRINT_L1(tr("Daemon is local, assuming trusted"));
+      m_trusted_daemon = true;
+    }
+  }
+  catch (const std::exception &e) { }
+
   tools::password_container pwd_container;
   if (!get_password(vm, true, pwd_container))
     return false;