diff --git a/config.js b/config.js
index 8d29ace43..4e6e38d67 100644
--- a/config.js
+++ b/config.js
@@ -64,7 +64,14 @@ var defaultConfig = {
   // This can be changed on the UX > Settings > Insight livenet
   EncryptedInsightStorage: {
     url: 'https://insight.bitpay.com:443/api/email',
-     //url: 'http://localhost:3001/api/email'
+    //url: 'http://localhost:3001/api/email'
+
+    // This KDF parameters are for the passphrase for Insight authentication
+    // Are not related to encryption itself.
+    //
+    // WARN: Changing this parameters would prevent accesing previously created profiles.
+    iterations: 1000,
+    salt: 'jBbYTj8zTrOt6V',
   },
 
   GoogleDrive: {
diff --git a/js/controllers/settings.js b/js/controllers/settings.js
index bfe125063..057f30bef 100644
--- a/js/controllers/settings.js
+++ b/js/controllers/settings.js
@@ -93,7 +93,9 @@ angular.module('copayApp.controllers').controller('SettingsController', function
       defaultLanguage: $scope.selectedLanguage.isoCode,
       plugins: plugins,
       logLevel: $scope.selectedLogLevel.name,
-      EncryptedInsightStorage: {url: insightSettings.livenet.url + '/api/email' },
+      EncryptedInsightStorage: _.extend(config.EncryptedInsightStorage, {
+        url: insightSettings.livenet.url + '/api/email'
+      }),
     }));
 
     // Go home reloading the application
diff --git a/js/plugins/EncryptedInsightStorage.js b/js/plugins/EncryptedInsightStorage.js
index 6e759f794..622c92678 100644
--- a/js/plugins/EncryptedInsightStorage.js
+++ b/js/plugins/EncryptedInsightStorage.js
@@ -1,21 +1,38 @@
 var cryptoUtil = require('../util/crypto');
 var InsightStorage = require('./InsightStorage');
 var inherits = require('inherits');
+var log = require('../log');
+var SEPARATOR = '%^#@';
 
 function EncryptedInsightStorage(config) {
   InsightStorage.apply(this, [config]);
 }
 inherits(EncryptedInsightStorage, InsightStorage);
 
+
+EncryptedInsightStorage.prototype._brokenDecrypt = function(body) {
+  var key = cryptoUtil.kdf(this.password + this.email, 'mjuBtGybi/4=', 100);
+  log.debug('Trying legacy decrypt')
+  var decryptedJson = cryptoUtil.decrypt(key, body);
+  return decryptedJson;
+};
+
 EncryptedInsightStorage.prototype.getItem = function(name, callback) {
-  var key = cryptoUtil.kdf(this.password + this.email);
+  var self = this;
   InsightStorage.prototype.getItem.apply(this, [name,
     function(err, body) {
       if (err) {
         return callback(err);
       }
-      var decryptedJson = cryptoUtil.decrypt(key, body);
+      var decryptedJson = cryptoUtil.decrypt(self.email + SEPARATOR + self.password, body);
+
       if (!decryptedJson) {
+        log.debug('Could not decrypt value using current decryption schema');
+        decryptedJson = self._brokenDecrypt(body);
+      }
+
+      if (!decryptedJson) {
+        log.debug('Could not decrypt value.');
         return callback('PNOTFOUND');
       }
       return callback(null, decryptedJson);
@@ -24,13 +41,11 @@ EncryptedInsightStorage.prototype.getItem = function(name, callback) {
 };
 
 EncryptedInsightStorage.prototype.setItem = function(name, value, callback) {
-  var key = cryptoUtil.kdf(this.password + this.email);
-  var record = cryptoUtil.encrypt(key, value);
+  var record = cryptoUtil.encrypt(this.email + SEPARATOR + this.password, value);
   InsightStorage.prototype.setItem.apply(this, [name, record, callback]);
 };
 
 EncryptedInsightStorage.prototype.removeItem = function(name, callback) {
-  var key = cryptoUtil.kdf(this.password + this.email);
   InsightStorage.prototype.removeItem.apply(this, [name, callback]);
 };
 
diff --git a/js/plugins/EncryptedLocalStorage.js b/js/plugins/EncryptedLocalStorage.js
index 698e999d6..1cf2c3af2 100644
--- a/js/plugins/EncryptedLocalStorage.js
+++ b/js/plugins/EncryptedLocalStorage.js
@@ -1,32 +1,57 @@
 var cryptoUtil = require('../util/crypto');
+var log = require('../log');
 var LocalStorage = require('./LocalStorage');
 var inherits = require('inherits');
 
+var SEPARATOR = '@#$';
+
 function EncryptedLocalStorage(config) {
   LocalStorage.apply(this, [config]);
 }
 inherits(EncryptedLocalStorage, LocalStorage);
 
+
+EncryptedLocalStorage.prototype._brokenDecrypt = function(body) {
+  var key = cryptoUtil.kdf(this.password + this.email, 'mjuBtGybi/4=', 100);
+  log.debug('Trying legacy decrypt')
+  var decryptedJson = cryptoUtil.decrypt(key, body);
+  return decryptedJson;
+};
+
+
 EncryptedLocalStorage.prototype.getItem = function(name, callback) {
-  var key = cryptoUtil.kdf(this.password + this.email);
+  var self = this;
   LocalStorage.prototype.getItem.apply(this, [name,
     function(err, body) {
-      var decryptedJson = cryptoUtil.decrypt(key, body);
+      var decryptedJson = cryptoUtil.decrypt(self.email + SEPARATOR + self.password, body);
+
       if (!decryptedJson) {
+        log.debug('Could not decrypt value using current decryption schema');
+        decryptedJson = self._brokenDecrypt(body);
+      }
+
+      if (!decryptedJson) {
+        log.debug('Could not decrypt value.');
         return callback('PNOTFOUND');
       }
+
       return callback(null, decryptedJson);
     }
   ]);
 };
 
 EncryptedLocalStorage.prototype.setItem = function(name, value, callback) {
-  var key = cryptoUtil.kdf(this.password + this.email);
   if (!_.isString(value)) {
     value = JSON.stringify(value);
   }
-  var record = cryptoUtil.encrypt(key, value);
+  var record = cryptoUtil.encrypt(this.email + SEPARATOR + this.password, value);
   LocalStorage.prototype.setItem.apply(this, [name, record, callback]);
 };
 
+EncryptedLocalStorage.prototype.removeItem = function(name, callback) {
+  InsightStorage.prototype.removeItem.apply(this, [name, callback]);
+};
+
+
+
 module.exports = EncryptedLocalStorage;
diff --git a/js/plugins/InsightStorage.js b/js/plugins/InsightStorage.js
index b27cb4deb..c65ccbfe2 100644
--- a/js/plugins/InsightStorage.js
+++ b/js/plugins/InsightStorage.js
@@ -1,8 +1,10 @@
 var request = require('request');
 var cryptoUtil = require('../util/crypto');
+var bitcore = require('bitcore');
 var buffers = require('buffer');
 var querystring = require('querystring');
 var Identity = require('../models/Identity');
+var log = require('../log');
 
 var SEPARATOR = '|';
 
@@ -10,9 +12,12 @@ function InsightStorage(config) {
   this.type = 'DB';
   this.storeUrl = config.url || 'https://insight.bitpay.com:443/api/email',
   this.request = config.request || request;
+
+  this.iterations = config.iterations || 1000;
+  this.salt = config.salt || 'jBbYTj8zTrOt6V';
 }
 
-InsightStorage.prototype.init = function () {};
+InsightStorage.prototype.init = function() {};
 
 InsightStorage.prototype.setCredentials = function(email, password, opts) {
   this.email = email;
@@ -42,6 +47,7 @@ InsightStorage.prototype.getItem = function(name, callback) {
   var self = this;
 
   this._makeGetRequest(passphrase, name, function(err, body) {
+    if (err) log.info('[InsightStorage. err]', err);
     if (err && err.indexOf('PNOTFOUND') !== -1 && mayBeOldPassword(self.password)) {
       return self._brokenGetItem(name, callback);
     }
@@ -49,17 +55,38 @@ InsightStorage.prototype.getItem = function(name, callback) {
   });
 };
 
+/* This key need to have DIFFERENT
+ * settings(salt,iterations) than the kdf for wallet/profile encryption
+ * in Encrpted*Storage. The user should be able
+ * to change the settings on config.js to modify salt / iterations
+ * for encryption, but
+ * mantain the same key & passphrase. This is why those settings are
+ * not shared with encryption
+ */
+InsightStorage.prototype.getKey = function() {
+  if (!this._cachedKey) {
+    this._cachedKey = cryptoUtil.kdf(this.password + SEPARATOR + this.email, this.salt, this.iterations);
+  }
+  return this._cachedKey;
+};
+
 InsightStorage.prototype.getPassphrase = function() {
-  return cryptoUtil.hmac(this.getKey(), this.password);
+  return bitcore.util.twoSha256(this.getKey()).toString('base64');
 };
 
 InsightStorage.prototype._makeGetRequest = function(passphrase, key, callback) {
   var authHeader = new buffers.Buffer(this.email + ':' + passphrase).toString('base64');
   var retrieveUrl = this.storeUrl + '/retrieve';
-  this.request.get({
-      url: retrieveUrl + '?' + querystring.encode({key: key}),
-      headers: {'Authorization': authHeader}
-    },
+  var getParams = {
+    url: retrieveUrl + '?' + querystring.encode({
+      key: key
+    }),
+    headers: {
+      'Authorization': authHeader
+    }
+  };
+  log.debug('Insight request', getParams);
+  this.request.get(getParams,
     function(err, response, body) {
       if (err) {
         return callback('Connection error');
@@ -78,6 +105,7 @@ InsightStorage.prototype._makeGetRequest = function(passphrase, key, callback) {
 InsightStorage.prototype._brokenGetItem = function(name, callback) {
   var passphrase = this._makeBrokenSecret();
   var self = this;
+  log.debug('using legacy get');
   this._makeGetRequest(passphrase, name, function(err, body) {
     if (!err) {
       return self._changePassphrase(function(err) {
@@ -91,16 +119,9 @@ InsightStorage.prototype._brokenGetItem = function(name, callback) {
   });
 };
 
-InsightStorage.prototype.getKey = function() {
-  if (!this._cachedKey) {
-    this._cachedKey = cryptoUtil.kdf(this.password + SEPARATOR + this.email);
-  }
-  return this._cachedKey;
-};
-
 InsightStorage.prototype._makeBrokenSecret = function() {
-  var key = cryptoUtil.kdf(this.password + this.email);
-  return cryptoUtil.kdf(key, this.password);
+  var key = cryptoUtil.kdf(this.password + this.email, 'mjuBtGybi/4=', 100);
+  return cryptoUtil.kdf(key, this.password, 100);
 };
 
 InsightStorage.prototype._changePassphrase = function(callback) {
@@ -111,7 +132,9 @@ InsightStorage.prototype._changePassphrase = function(callback) {
   var url = this.storeUrl + '/change_passphrase';
   this.request.post({
     url: url,
-    headers: {'Authorization': authHeader},
+    headers: {
+      'Authorization': authHeader
+    },
     body: querystring.encode({
       newPassphrase: newPassphrase
     })
@@ -135,7 +158,9 @@ InsightStorage.prototype.setItem = function(name, value, callback) {
   var registerUrl = this.storeUrl + '/save';
   this.request.post({
     url: registerUrl,
-    headers: {'Authorization': authHeader},
+    headers: {
+      'Authorization': authHeader
+    },
     body: querystring.encode({
       key: name,
       record: value
diff --git a/test/plugin.insight.js b/test/plugin.insight.js
index 5f65942ea..c086d6ea1 100644
--- a/test/plugin.insight.js
+++ b/test/plugin.insight.js
@@ -5,16 +5,17 @@ var querystring = require('querystring');
 describe('insight storage plugin', function() {
 
   var requestMock = sinon.stub();
-  var storage = new InsightStorage({request: requestMock});
+  var storage = new InsightStorage({
+    request: requestMock
+  });
   var email = 'john@doe.com';
   var password = '1234';
 
   var data = '{"random": true}';
   var namespace = 'profile::0000000000000000000000000000000000000000';
 
-  var oldSecret = 'rFA+F/N+ZvKXp717zBdfCKYQ5v9Fjry0W6tautj5etIH'
-                + 'KLQliZBEYXA7AXjTJ9K3DglzGWJKost3QJUCMbhM/A=='
-  var newSecret = '+72pwnQ/ukrXVXZ/L4vFeiykwn522uVz0J6p81TGXvI=';
+  var oldSecret = 'rFA+F/N+ZvKXp717zBdfCKYQ5v9Fjry0W6tautj5etIH' + 'KLQliZBEYXA7AXjTJ9K3DglzGWJKost3QJUCMbhM/A=='
+  var newSecret = '96KnVsaQFv8vsbxAFeYyGM4nO/8B6YaVNKz9IxDmwzk=';
 
   var setupStorageCredentials = function() {
     storage.setCredentials(email, password);
@@ -29,7 +30,9 @@ describe('insight storage plugin', function() {
 
   var setupForCreation = function() {
     requestMock.get.onFirstCall().callsArgWith(1, 'Not found');
-    requestMock.post.onFirstCall().callsArgWith(1, null, {statusCode: 200});
+    requestMock.post.onFirstCall().callsArgWith(1, null, {
+      statusCode: 200
+    });
   };
 
   it('should be able to create a namespace for storage', function(done) {
@@ -43,7 +46,9 @@ describe('insight storage plugin', function() {
   });
 
   var setupForRetrieval = function() {
-    requestMock.get.onFirstCall().callsArgWith(1, null, {statusCode: 200}, data);
+    requestMock.get.onFirstCall().callsArgWith(1, null, {
+      statusCode: 200
+    }, data);
   };
 
   it('should be able to retrieve data in a namespace', function(done) {
@@ -57,8 +62,10 @@ describe('insight storage plugin', function() {
     });
   });
 
-  var setupForSave = function () {
-    requestMock.post.onFirstCall().callsArgWith(1, null, {statusCode: 200});
+  var setupForSave = function() {
+    requestMock.post.onFirstCall().callsArgWith(1, null, {
+      statusCode: 200
+    });
   };
 
   it('should be able to overwrite data when using same password', function(done) {
@@ -95,10 +102,16 @@ describe('insight storage plugin', function() {
 
   var setupForOldData = function() {
     requestMock.get = sinon.stub();
-    requestMock.get.onFirstCall().callsArgWith(1, null, {statusCode: 403});
-    requestMock.get.onSecondCall().callsArgWith(1, null, {statusCode: 200}, data);
+    requestMock.get.onFirstCall().callsArgWith(1, null, {
+      statusCode: 403
+    });
+    requestMock.get.onSecondCall().callsArgWith(1, null, {
+      statusCode: 200
+    }, data);
     requestMock.post = sinon.stub();
-    requestMock.post.onFirstCall().callsArgWith(1, null, {statusCode: 200});
+    requestMock.post.onFirstCall().callsArgWith(1, null, {
+      statusCode: 200
+    });
   }
 
   it('should be able to restore 0.7.2 data', function(done) {
@@ -120,11 +133,9 @@ describe('insight storage plugin', function() {
         var receivedArgs = requestMock.post.firstCall.args[0].body;
         var url = requestMock.post.firstCall.args[0].url;
         var args = querystring.decode(receivedArgs);
-        assert(url.indexOf('change_passphrase') !== -1);
-        assert(requestMock.post.firstCall.args[0].headers.Authorization
-               ===
-               new Buffer(email + ':' + oldSecret).toString('base64'));
-        assert(args.newPassphrase === newSecret);
+        url.indexOf('change_passphrase').should.not.be.equal(-1);
+        requestMock.post.firstCall.args[0].headers.Authorization.should.be.equal( new Buffer(email + ':' + oldSecret).toString('base64'));
+        args.newPassphrase.should.be.equal(newSecret);
         done();
       });
     }
diff --git a/test/util.crypto.js b/test/util.crypto.js
index 2cb42211c..765e537ba 100644
--- a/test/util.crypto.js
+++ b/test/util.crypto.js
@@ -49,7 +49,7 @@ describe('crypto utils', function() {
       phrase.should.equal(t.phrase);
     });
     it('should generate a passphrase from weird chars', function() {
-      var phrase = cryptoUtils.kdf('Pwd123!@#$%^&*(){}[]\|/?.>,<=+-_`~åéþ䲤þçæ¶');
+      var phrase = cryptoUtils.kdf('Pwd123!@#$%^&*(){}[]\|/?.>,<=+-_`~åéþ䲤þçæ¶', tests[0].salt, 100);
       var expected = 'CZwb5KdikvZHVsEoZUdJckAy+yyzGnd++XhyqxJXbc30'
                    + 'pEoO+WqHgqBbdf0gn2wiyWZv3zymB+7L75Xnz3uSlg==';
       phrase.should.equal(expected);