This decision, resulting in the removal of up to eight individuals from their positions, follows an internal "investigation" by the UVF.
The east Belfast UVF has been involved in serious criminal activities, including drug dealing, for several years and has been a primary target of the Police Service of Northern Ireland's (PSNI) paramilitary crime task force.
The announcement of the leadership's stand-down was made during a number of Remembrance Sunday events, although the statement itself has not been seen by BBC News NI.
A senior loyalist source indicated that this action is an attempt to distance loyalism from criminal activity. The PSNI is aware of this development and is monitoring the situation closely.
This move is seen as a potentially positive step by some, signaling efforts by influential figures within the UVF to transition away from criminality. However, there are concerns in security circles that criminal activities may continue in east Belfast, even without the formal UVF leadership.
Questions remain about whether the ousted leaders might form a separate organized crime group and whether this change will lead to violence.