I’d stick to brokers being regulated by CFTC (US), FCA (UK), or ASIC (AU). Be wary of CySEC.
New Zealand had one of the most lax regimes among ‘Western’ countries when it comes to regulating and licensing the retail FX space. Originally there was little regulation or licensing to speak of, other than requiring financial related companies to list in the country’s Financial Service Providers’ Register (FSPR).
In 2017 New Zealand required all Spot Forex, CFD and Binary Options brokers in the country) to obtain a Derivatives License, (which is still a fairly mild form of regulation and licensing when compared to Australia).
Due to increasing regulatory scrutiny, brokers started looking for “more flexible jurisdictions to get licensed”. Countries like Saint Vincent & the Grenadines, and Seychelles.
To FXPIG’s credit, they did explain their move to Vanuatu in a blog post.