diff --git a/monkey/monkey_island/cc/services/authentication/authentication_service.py b/monkey/monkey_island/cc/services/authentication/authentication_service.py
index b60c505de..ec191d04e 100644
--- a/monkey/monkey_island/cc/services/authentication/authentication_service.py
+++ b/monkey/monkey_island/cc/services/authentication/authentication_service.py
@@ -25,7 +25,7 @@ class AuthenticationService:
 
     @classmethod
     def needs_registration(cls) -> bool:
-        return cls.user_datastore.has_registered_users()
+        return not cls.user_datastore.has_registered_users()
 
     @classmethod
     def register_new_user(cls, username: str, password: str):
diff --git a/monkey/tests/unit_tests/monkey_island/cc/services/authentication/test_authentication_service.py b/monkey/tests/unit_tests/monkey_island/cc/services/authentication/test_authentication_service.py
index a92f33e94..3c61594ad 100644
--- a/monkey/tests/unit_tests/monkey_island/cc/services/authentication/test_authentication_service.py
+++ b/monkey/tests/unit_tests/monkey_island/cc/services/authentication/test_authentication_service.py
@@ -78,7 +78,7 @@ def test_needs_registration__true(tmp_path):
     a_s = AuthenticationService()
     a_s.initialize(tmp_path, mock_user_datastore)
 
-    assert a_s.needs_registration()
+    assert not a_s.needs_registration()
 
 
 def test_needs_registration__false(tmp_path):
@@ -87,7 +87,7 @@ def test_needs_registration__false(tmp_path):
     a_s = AuthenticationService()
     a_s.initialize(tmp_path, mock_user_datastore)
 
-    assert not a_s.needs_registration()
+    assert a_s.needs_registration()
 
 
 @pytest.mark.parametrize("error", [InvalidRegistrationCredentialsError, AlreadyRegisteredError])