To revoke or remove a license or official permission from someone or something; to strip of credentials.
Modern English: 'de-' (to remove) + 'license' (official permission). Formed in the 20th century as professional licensing became more common and revocation more regulated.
When a doctor's license is revoked for malpractice, they've been 'delicensed'—they can no longer practice medicine legally, which is a serious professional punishment!
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