diff --git a/modules/apps/27-interchain-accounts/host/keeper/handshake.go b/modules/apps/27-interchain-accounts/host/keeper/handshake.go
index d687cb61f4f..ff38a599937 100644
--- a/modules/apps/27-interchain-accounts/host/keeper/handshake.go
+++ b/modules/apps/27-interchain-accounts/host/keeper/handshake.go
@@ -54,14 +54,9 @@ func (k Keeper) OnChanOpenTry(
 			return "", errorsmod.Wrapf(icatypes.ErrActiveChannelAlreadySet, "existing active channel %s for portID %s is already OPEN", activeChannelID, portID)
 		}
 
-		appVersion, found := k.GetAppVersion(ctx, portID, activeChannelID)
-		if !found {
-			panic(fmt.Errorf("active channel mapping set for %s, but channel does not exist in channel store", activeChannelID))
-		}
-
-		if !icatypes.IsPreviousMetadataEqual(appVersion, metadata) {
-			return "", errorsmod.Wrap(icatypes.ErrInvalidVersion, "previous active channel metadata does not match provided version")
-		}
+		// if a channel is being reopened, we allow the controller to propose new fields
+		// which are not exactly the same as the previous. The provided address will
+		// be overwritten with the correct one before the metadata is returned.
 	}
 
 	// On the host chain the capability may only be claimed during the OnChanOpenTry
diff --git a/modules/apps/27-interchain-accounts/host/keeper/handshake_test.go b/modules/apps/27-interchain-accounts/host/keeper/handshake_test.go
index 4095fd41986..431e91554f9 100644
--- a/modules/apps/27-interchain-accounts/host/keeper/handshake_test.go
+++ b/modules/apps/27-interchain-accounts/host/keeper/handshake_test.go
@@ -95,6 +95,28 @@ func (suite *KeeperTestSuite) TestOnChanOpenTry() {
 				suite.Require().False(found)
 			}, true,
 		},
+		{
+			"success - previous metadata is different",
+			func() {
+				// create a new channel and set it in state
+				ch := channeltypes.NewChannel(channeltypes.CLOSED, channeltypes.ORDERED, channeltypes.NewCounterparty(path.EndpointA.ChannelConfig.PortID, path.EndpointA.ChannelID), []string{path.EndpointA.ConnectionID}, TestVersion)
+				suite.chainB.GetSimApp().GetIBCKeeper().ChannelKeeper.SetChannel(suite.chainB.GetContext(), path.EndpointB.ChannelConfig.PortID, path.EndpointB.ChannelID, ch)
+
+				// set the active channelID in state
+				suite.chainB.GetSimApp().ICAHostKeeper.SetActiveChannelID(suite.chainB.GetContext(), path.EndpointB.ConnectionID, path.EndpointA.ChannelConfig.PortID, path.EndpointB.ChannelID)
+
+				// set the previous encoding to be proto3json.
+				// the new encoding is set to be protobuf in the test below.
+				metadata.Encoding = icatypes.EncodingProto3JSON
+
+				versionBytes, err := icatypes.ModuleCdc.MarshalJSON(&metadata)
+				suite.Require().NoError(err)
+
+				channel.Version = string(versionBytes)
+
+				path.EndpointB.SetChannel(*channel)
+			}, true,
+		},
 		{
 			"reopening account fails - no existing account",
 			func() {
@@ -148,27 +170,6 @@ func (suite *KeeperTestSuite) TestOnChanOpenTry() {
 			},
 			false,
 		},
-		{
-			"invalid metadata - previous metadata is different",
-			func() {
-				// create a new channel and set it in state
-				ch := channeltypes.NewChannel(channeltypes.CLOSED, channeltypes.ORDERED, channeltypes.NewCounterparty(path.EndpointA.ChannelConfig.PortID, path.EndpointA.ChannelID), []string{path.EndpointA.ConnectionID}, TestVersion)
-				suite.chainB.GetSimApp().GetIBCKeeper().ChannelKeeper.SetChannel(suite.chainB.GetContext(), path.EndpointB.ChannelConfig.PortID, path.EndpointB.ChannelID, ch)
-
-				// set the active channelID in state
-				suite.chainB.GetSimApp().ICAHostKeeper.SetActiveChannelID(suite.chainB.GetContext(), path.EndpointB.ConnectionID, path.EndpointA.ChannelConfig.PortID, path.EndpointB.ChannelID)
-
-				// attempt to downgrade version by reinitializing channel with version 1, but setting channel to version 2
-				metadata.Version = "ics27-2"
-
-				versionBytes, err := icatypes.ModuleCdc.MarshalJSON(&metadata)
-				suite.Require().NoError(err)
-
-				channel.Version = string(versionBytes)
-
-				path.EndpointB.SetChannel(*channel)
-			}, false,
-		},
 		{
 			"invalid port ID",
 			func() {