diff --git a/lib/block/blockheader.js b/lib/block/blockheader.js
index d79a984..45b1b13 100644
--- a/lib/block/blockheader.js
+++ b/lib/block/blockheader.js
@@ -136,7 +136,7 @@ BlockHeader.fromString = function fromString(str) {
  */
 BlockHeader._fromBufferReader = function _fromBufferReader(br) {
   var info = {};
-  info.version = br.readUInt32LE();
+  info.version = br.readInt32LE();
   info.prevHash = br.read(32);
   info.merkleRoot = br.read(32);
   info.time = br.readUInt32LE();
@@ -191,7 +191,7 @@ BlockHeader.prototype.toBufferWriter = function toBufferWriter(bw) {
   if (!bw) {
     bw = new BufferWriter();
   }
-  bw.writeUInt32LE(this.version);
+  bw.writeInt32LE(this.version);
   bw.write(this.prevHash);
   bw.write(this.merkleRoot);
   bw.writeUInt32LE(this.time);
diff --git a/lib/encoding/bufferreader.js b/lib/encoding/bufferreader.js
index d7ca157..644cafb 100644
--- a/lib/encoding/bufferreader.js
+++ b/lib/encoding/bufferreader.js
@@ -83,6 +83,12 @@ BufferReader.prototype.readUInt32LE = function() {
   return val;
 };
 
+BufferReader.prototype.readInt32LE = function() {
+  var val = this.buf.readInt32LE(this.pos);
+  this.pos = this.pos + 4;
+  return val;
+};
+
 BufferReader.prototype.readUInt64BEBN = function() {
   var buf = this.buf.slice(this.pos, this.pos + 8);
   var bn = BN.fromBuffer(buf);
diff --git a/lib/transaction/transaction.js b/lib/transaction/transaction.js
index 9766024..276b7fb 100644
--- a/lib/transaction/transaction.js
+++ b/lib/transaction/transaction.js
@@ -279,7 +279,7 @@ Transaction.prototype.toBuffer = function() {
 };
 
 Transaction.prototype.toBufferWriter = function(writer) {
-  writer.writeUInt32LE(this.version);
+  writer.writeInt32LE(this.version);
   writer.writeVarintNum(this.inputs.length);
   _.each(this.inputs, function(input) {
     input.toBufferWriter(writer);
@@ -301,7 +301,7 @@ Transaction.prototype.fromBufferReader = function(reader) {
   $.checkArgument(!reader.finished(), 'No transaction data received');
   var i, sizeTxIns, sizeTxOuts;
 
-  this.version = reader.readUInt32LE();
+  this.version = reader.readInt32LE();
   sizeTxIns = reader.readVarintNum();
   for (i = 0; i < sizeTxIns; i++) {
     var input = Input.fromBufferReader(reader);
diff --git a/test/block/blockheader.js b/test/block/blockheader.js
index 4bf53ae..07e5008 100644
--- a/test/block/blockheader.js
+++ b/test/block/blockheader.js
@@ -79,6 +79,16 @@ describe('BlockHeader', function() {
 
   });
 
+  describe('version', function() {
+    it('is interpreted as an int32le', function() {
+      var hex = 'ffffffff00000000000000000000000000000000000000000000000000000000000000004141414141414141414141414141414141414141414141414141414141414141010000000200000003000000';
+      var header = BlockHeader.fromBuffer(new Buffer(hex, 'hex'));
+      header.version.should.equal(-1);
+      header.timestamp.should.equal(1);
+    });
+  });
+
+
   describe('#fromObject', function() {
 
     it('should set all the variables', function() {
diff --git a/test/transaction/transaction.js b/test/transaction/transaction.js
index 9709176..994150d 100644
--- a/test/transaction/transaction.js
+++ b/test/transaction/transaction.js
@@ -28,6 +28,12 @@ describe('Transaction', function() {
     transaction.uncheckedSerialize().should.equal(tx_1_hex);
   });
 
+  it('should parse the version as a signed integer', function () {
+    var transaction = Transaction('ffffffff0000ffffffff')
+    transaction.version.should.equal(-1);
+    transaction.nLockTime.should.equal(0xffffffff);
+  });
+
   it('fails if an invalid parameter is passed to constructor', function() {
     expect(function() {
       return new Transaction(1);