diff --git a/cmd/localstack/main.go b/cmd/localstack/main.go
index 8a4187a..baafc37 100644
--- a/cmd/localstack/main.go
+++ b/cmd/localstack/main.go
@@ -15,17 +15,18 @@ import (
 )
 
 type LsOpts struct {
-	InteropPort       string
-	RuntimeEndpoint   string
-	RuntimeId         string
-	InitTracingPort   string
-	User              string
-	CodeArchives      string
-	HotReloadingPaths []string
-	EnableDnsServer   string
-	LocalstackIP      string
-	InitLogLevel      string
-	EdgePort          string
+	InteropPort         string
+	RuntimeEndpoint     string
+	RuntimeId           string
+	InitTracingPort     string
+	User                string
+	CodeArchives        string
+	HotReloadingPaths   []string
+	EnableDnsServer     string
+	LocalstackIP        string
+	InitLogLevel        string
+	EdgePort            string
+	EnableXRayTelemetry string
 }
 
 func GetEnvOrDie(env string) string {
@@ -48,10 +49,11 @@ func InitLsOpts() *LsOpts {
 		InitLogLevel:    GetenvWithDefault("LOCALSTACK_INIT_LOG_LEVEL", "debug"),
 		EdgePort:        GetenvWithDefault("EDGE_PORT", "4566"),
 		// optional or empty
-		CodeArchives:      os.Getenv("LOCALSTACK_CODE_ARCHIVES"),
-		HotReloadingPaths: strings.Split(GetenvWithDefault("LOCALSTACK_HOT_RELOADING_PATHS", ""), ","),
-		EnableDnsServer:   os.Getenv("LOCALSTACK_ENABLE_DNS_SERVER"),
-		LocalstackIP:      os.Getenv("LOCALSTACK_HOSTNAME"),
+		CodeArchives:        os.Getenv("LOCALSTACK_CODE_ARCHIVES"),
+		HotReloadingPaths:   strings.Split(GetenvWithDefault("LOCALSTACK_HOT_RELOADING_PATHS", ""), ","),
+		EnableDnsServer:     os.Getenv("LOCALSTACK_ENABLE_DNS_SERVER"),
+		EnableXRayTelemetry: os.Getenv("LOCALSTACK_ENABLE_XRAY_TELEMETRY"),
+		LocalstackIP:        os.Getenv("LOCALSTACK_HOSTNAME"),
 	}
 }
 
@@ -67,6 +69,7 @@ func UnsetLsEnvs() {
 		"LOCALSTACK_CODE_ARCHIVES",
 		"LOCALSTACK_HOT_RELOADING_PATHS",
 		"LOCALSTACK_ENABLE_DNS_SERVER",
+		"LOCALSTACK_ENABLE_XRAY_TELEMETRY",
 		"LOCALSTACK_INIT_LOG_LEVEL",
 		// Docker container ID
 		"HOSTNAME",
@@ -146,7 +149,7 @@ func main() {
 
 	// xray daemon
 	xrayConfig := initConfig("http://" + lsOpts.LocalstackIP + ":" + lsOpts.EdgePort)
-	d := initDaemon(xrayConfig)
+	d := initDaemon(xrayConfig, lsOpts.EnableXRayTelemetry == "1")
 	sandbox.AddShutdownFunc(func() {
 		log.Debugln("Shutting down xray daemon")
 		d.stop()
diff --git a/cmd/localstack/xraydaemon.go b/cmd/localstack/xraydaemon.go
index 8d2b768..686c2a6 100644
--- a/cmd/localstack/xraydaemon.go
+++ b/cmd/localstack/xraydaemon.go
@@ -85,7 +85,7 @@ func initConfig(endpoint string) *cfg.Config {
 	return xrayConfig
 }
 
-func initDaemon(config *cfg.Config) *Daemon {
+func initDaemon(config *cfg.Config, enableTelemetry bool) *Daemon {
 	if logFile != "" {
 		var fileWriter io.Writer
 		if *config.Logging.LogRotation {
@@ -133,8 +133,9 @@ func initDaemon(config *cfg.Config) *Daemon {
 	awsConfig, session := conn.GetAWSConfigSession(&conn.Conn{}, config, config.RoleARN, config.Region, noMetadata)
 	log.Infof("Using region: %v", aws.StringValue(awsConfig.Region))
 
-	log.Debugf("ARN of the AWS resource running the daemon: %v", config.ResourceARN)
-	telemetry.Init(awsConfig, session, config.ResourceARN, noMetadata)
+	if enableTelemetry {
+		telemetry.Init(awsConfig, session, config.ResourceARN, noMetadata)
+	}
 
 	// If calculated number of buffer is lower than our default, use calculated one. Otherwise, use default value.
 	parameterConfig.Processor.BatchSize = util.GetMinIntValue(parameterConfig.Processor.BatchSize, buffers)
@@ -179,10 +180,14 @@ func (d *Daemon) close() {
 	// Signal routines to finish
 	// This will push telemetry and customer segments in parallel
 	d.std.Close()
-	telemetry.T.Quit <- true
+	if telemetry.T != nil {
+		telemetry.T.Quit <- true
+	}
 
 	<-d.processor.Done
-	<-telemetry.T.Done
+	if telemetry.T != nil {
+		<-telemetry.T.Done
+	}
 
 	log.Debugf("Trace segment: received: %d, truncated: %d, processed: %d", atomic.LoadUint64(&d.count), d.std.TruncatedCount(), d.processor.ProcessedCount())
 	log.Debugf("Shutdown finished. Current epoch in nanoseconds: %v", time.Now().UnixNano())
@@ -226,7 +231,7 @@ func (d *Daemon) poll() {
 			fallbackPointerUsed = true
 		}
 		rlen := d.read(bufPointer)
-		if rlen > 0 {
+		if rlen > 0 && telemetry.T != nil {
 			telemetry.T.SegmentReceived(1)
 		}
 		if rlen == 0 {
@@ -237,7 +242,9 @@ func (d *Daemon) poll() {
 		}
 		if fallbackPointerUsed {
 			log.Warn("Segment dropped. Consider increasing memory limit")
-			telemetry.T.SegmentSpillover(1)
+			if telemetry.T != nil {
+				telemetry.T.SegmentSpillover(1)
+			}
 			continue
 		} else if rlen == -1 {
 			return
@@ -250,7 +257,9 @@ func (d *Daemon) poll() {
 		if len(slices[1]) == 0 {
 			log.Warnf("Missing header or segment: %s", string(slices[0]))
 			d.pool.Return(bufPointer)
-			telemetry.T.SegmentRejected(1)
+			if telemetry.T != nil {
+				telemetry.T.SegmentRejected(1)
+			}
 			continue
 		}
 
@@ -264,7 +273,9 @@ func (d *Daemon) poll() {
 		default:
 			log.Warnf("Invalid header: %s", string(header))
 			d.pool.Return(bufPointer)
-			telemetry.T.SegmentRejected(1)
+			if telemetry.T != nil {
+				telemetry.T.SegmentRejected(1)
+			}
 			continue
 		}