diff --git a/localenv/cloud-nine-wallet/docker-compose.yml b/localenv/cloud-nine-wallet/docker-compose.yml
index 3bfdbcab72..9d2921bd89 100644
--- a/localenv/cloud-nine-wallet/docker-compose.yml
+++ b/localenv/cloud-nine-wallet/docker-compose.yml
@@ -74,7 +74,6 @@ services:
       WALLET_ADDRESS_URL: ${CLOUD_NINE_WALLET_ADDRESS_URL:-https://cloud-nine-wallet-backend/.well-known/pay}
       ILP_CONNECTOR_URL: ${CLOUD_NINE_CONNECTOR_URL:-http://cloud-nine-wallet-backend:3002}
       ENABLE_TELEMETRY: true
-      ENABLE_TELEMETRY_TRACES: true
       KEY_ID: 7097F83B-CB84-469E-96C6-2141C72E22C0
     depends_on:
       - shared-database
diff --git a/localenv/happy-life-bank/docker-compose.yml b/localenv/happy-life-bank/docker-compose.yml
index d45ec80565..465bd030ff 100644
--- a/localenv/happy-life-bank/docker-compose.yml
+++ b/localenv/happy-life-bank/docker-compose.yml
@@ -66,7 +66,6 @@ services:
       REDIS_URL: redis://shared-redis:6379/2
       WALLET_ADDRESS_URL: ${HAPPY_LIFE_BANK_WALLET_ADDRESS_URL:-https://happy-life-bank-backend/.well-known/pay}
       ENABLE_TELEMETRY: true
-      ENABLE_TELEMETRY_TRACES: true
       KEY_ID: 53f2d913-e98a-40b9-b270-372d0547f23d
     depends_on:
       - cloud-nine-backend