diff --git a/pkg/security/keymanager.go b/pkg/security/keymanager.go
index d084a9f..3909f92 100644
--- a/pkg/security/keymanager.go
+++ b/pkg/security/keymanager.go
@@ -255,9 +255,7 @@ func NewKeyManager(config *KeyManagerConfig, logger *logger.Logger) (*KeyManager
 
 // NewKeyManagerWithChainID creates a key manager with specified chain ID for enhanced validation
 func NewKeyManagerWithChainID(config *KeyManagerConfig, logger *logger.Logger, chainID *big.Int) (*KeyManager, error) {
-	// Skip production validation in development/test environments
-	validateProduction := os.Getenv("GO_ENV") != "development" && os.Getenv("NODE_ENV") != "development" && os.Getenv("NODE_ENV") != "test"
-	return newKeyManagerInternal(config, logger, chainID, validateProduction)
+	return newKeyManagerInternal(config, logger, chainID, true)
 }
 
 // newKeyManagerForTesting creates a key manager without production validation (test only)
@@ -1668,6 +1666,11 @@ func encryptBackupData(data interface{}, key []byte) ([]byte, error) {
 
 // validateProductionConfig validates production-specific security requirements
 func validateProductionConfig(config *KeyManagerConfig) error {
+	// Skip validation in development environments
+	if os.Getenv("GO_ENV") == "development" || os.Getenv("NODE_ENV") == "development" {
+		return nil
+	}
+
 	// Check for encryption key presence
 	if config.EncryptionKey == "" {
 		return fmt.Errorf("MEV_BOT_ENCRYPTION_KEY environment variable is required for production")