The news was confirmed by his promoter Frank Warren.
Chisora was involved in a number of controversial incidents before and after his WBC heavyweight title challenge against Vitali Klitschko, slapping his opponent at the weigh-in, spitting water at Klitschko's brother Wladimir and brawling with British rival David Haye following the points defeat.
Chisora was called before the Board in Cardiff and Warren revealed he has had his licence taken away indefinitely.
"His licence got withdrawn and what will happen now is we'll consider whether to appeal the decision," Warren said.
Chisora, who was smiling and laughing outside the Board's headquarters as Warren addressed the media, has 14 days to appeal.
Board secretary Robert Smith said: "The board have decided Dereck Chisora is not a fit and proper person to hold a licence and have withdrawn it with immediate effect."
The lack any of timescale on the ban means it is unclear whether Chisora will be kept out of the ring for around six months or punished heavily and banished for life.
Smith also confirmed that while the Board cannot hold Haye to account because he is officially retired, they will take his role in the brawl into account should he apply to regain his licence.