The government has announced it no longer recognises the Ulster Volunteer Force (UVF) as being on ceasefire.
The decision to "specify" the UVF and Red Hand Commando (RHC) was made by Northern Ireland Secretary Peter Hain.
Mr Hain was given a report from the Independent Monitoring Commission on the UVF's feud with the Loyalist Volunteer Force (LVF) last week.
The UVF has also been blamed for orchestrating riots following the cancellation of an Orange Order parade.
Loyalists clashed with police at the weekend following the cancellation of the parade in Whiterock, north Belfast on Saturday.
The UVF has also been linked to four recent murders. The organisation was set up in the late 1960s to fight resurgent Irish nationalism, but it used the name of the original UVF which was created by Sir Edward Carson in 1912 to fight home rule.