diff --git a/CHANGELOG.md b/CHANGELOG.md
index 33b5008e18..8e3e390738 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -46,6 +46,10 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ## Unreleased
 
+### Features
+
+- [2459](https://github.com/umee-network/umee/pull/2459), [2461](https://github.com/umee-network/umee/pull/2461) uibc: handle `params.ics20_hooks` switch (enabled / disabled).
+
 ## v6.4.0-beta1 - 2024-03-11
 
 ### Features
diff --git a/x/uibc/gmp/gmp_middleware.go b/x/uibc/gmp/gmp_middleware.go
index 1a0daa28c0..7509cf2549 100644
--- a/x/uibc/gmp/gmp_middleware.go
+++ b/x/uibc/gmp/gmp_middleware.go
@@ -15,6 +15,10 @@ func NewHandler() *Handler {
 
 func (h Handler) OnRecvPacket(ctx sdk.Context, coinReceived sdk.Coin, memo string, receiver sdk.AccAddress,
 ) error {
+	if len(memo) == 0 {
+		return nil
+	}
+
 	logger := ctx.Logger().With("handler", "gmp_handler")
 	var msg Message
 	var err error
diff --git a/x/uibc/uics20/ibc_module.go b/x/uibc/uics20/ibc_module.go
index d8e8987472..bdba70a29b 100644
--- a/x/uibc/uics20/ibc_module.go
+++ b/x/uibc/uics20/ibc_module.go
@@ -63,12 +63,14 @@ func (im ICS20Module) OnRecvPacket(ctx sdk.Context, packet channeltypes.Packet,
 		return ackResp
 	}
 
+	params := quotaKeeper.GetParams()
+
 	// NOTE: IBC hooks must be the last middleware - just the transfer app.
 	// MemoHandler may update amoount in the message, because the received token amount may be
 	// smaller than the amount originally sent (various fees). We need to be sure that there is
 	// no other middleware that can change packet data or amounts.
 
-	mh := MemoHandler{cdc: im.cdc, leverage: im.leverage}
+	mh := MemoHandler{executeEnabled: params.Ics20Hooks, cdc: im.cdc, leverage: im.leverage}
 	events, err := mh.onRecvPacketPrepare(&ctx, packet, ftData)
 	if err != nil {
 		if !errors.Is(err, errMemoValidation{}) {
diff --git a/x/uibc/uics20/memo_handler.go b/x/uibc/uics20/memo_handler.go
index d3164628d1..ccccb64b40 100644
--- a/x/uibc/uics20/memo_handler.go
+++ b/x/uibc/uics20/memo_handler.go
@@ -16,14 +16,24 @@ import (
 	"github.com/umee-network/umee/v6/x/uibc/gmp"
 )
 
+// error messages
+var (
+	errWrongSigner   = errors.New("msg signer doesn't match the ICS20 receiver")
+	errNoSubCoins    = errors.New("message must use only coins sent from the transfer")
+	errHooksDisabled = errors.New("ics20-hooks: execute is disabled but valid hook memo is set")
+	errMsg0Type      = errors.New("only MsgSupply, MsgSupplyCollateral and MsgLiquidate are supported as messages[0]")
+	// errMsg1Type = errors.New("only MsgBorrow is supported as messages[1]")
+)
+
 type MemoHandler struct {
 	cdc      codec.JSONCodec
 	leverage ltypes.MsgServer
 
-	isGMP    bool
-	msgs     []sdk.Msg
-	memo     string
-	received sdk.Coin
+	executeEnabled bool
+	isGMP          bool
+	msgs           []sdk.Msg
+	memo           string
+	received       sdk.Coin
 
 	receiver         sdk.AccAddress
 	fallbackReceiver sdk.AccAddress
@@ -85,9 +95,14 @@ func (mh *MemoHandler) onRecvPacketPrepare(
 }
 
 // runs messages encoded in the ICS20 memo.
+// Returns list of
 // NOTE: we fork the store and only commit if all messages pass. Otherwise the fork store
 // is discarded.
 func (mh MemoHandler) execute(ctx *sdk.Context) error {
+	if !mh.executeEnabled && (mh.isGMP || len(mh.msgs) != 0) {
+		return errHooksDisabled
+	}
+
 	logger := recvPacketLogger(ctx)
 	if mh.isGMP {
 		gh := gmp.NewHandler()
@@ -107,14 +122,6 @@ func (mh MemoHandler) execute(ctx *sdk.Context) error {
 	return nil
 }
 
-// error messages used in validateMemoMsg
-var (
-	errWrongSigner = errors.New("msg signer doesn't match the ICS20 receiver")
-	errNoSubCoins  = errors.New("message must use only coins sent from the transfer")
-	errMsg0Type    = errors.New("only MsgSupply, MsgSupplyCollateral and MsgLiquidate are supported as messages[0]")
-	// errMsg1Type = errors.New("only MsgBorrow is supported as messages[1]")
-)
-
 // We only support the following message combinations:
 // - [MsgSupply]
 // - [MsgSupplyCollateral]
diff --git a/x/uibc/uics20/memo_handler_test.go b/x/uibc/uics20/memo_handler_test.go
index 9e69cf2c3a..d9d594e588 100644
--- a/x/uibc/uics20/memo_handler_test.go
+++ b/x/uibc/uics20/memo_handler_test.go
@@ -3,6 +3,7 @@ package uics20
 import (
 	"testing"
 
+	storetypes "github.com/cosmos/cosmos-sdk/store/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/types/tx"
 	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
@@ -160,3 +161,33 @@ func TestAdjustOperatedCoin(t *testing.T) {
 		assert.Equal(t, tc.expectedAmount, tc.operated.Amount.Int64())
 	}
 }
+
+func TestMemoExecute(t *testing.T) {
+	lvg := mocks.NewLvgNoopMsgSrv()
+	mh := MemoHandler{leverage: lvg}
+	ctx, _ := tsdk.NewCtxOneStore(t, storetypes.NewMemoryStoreKey("quota"))
+	msgs := []sdk.Msg{&ltypes.MsgSupply{}}
+
+	tcs := []struct {
+		enabled bool
+		gmp     bool
+		msgs    []sdk.Msg
+		err     error
+	}{
+		{true, true, msgs, nil},
+		{true, false, msgs, nil},
+		{true, false, nil, nil},
+
+		{false, true, nil, errHooksDisabled},
+		{false, false, msgs, errHooksDisabled},
+		{false, true, msgs, errHooksDisabled},
+	}
+	for i, tc := range tcs {
+		mh.executeEnabled = tc.enabled
+		mh.isGMP = tc.gmp
+		mh.msgs = tc.msgs
+		err := mh.execute(&ctx)
+		assert.ErrorIs(t, err, tc.err, i)
+	}
+
+}