Ricky Hatton has been stripped of his licence to box at a British Boxing Board of Control (BBBC) hearing but can still work as a promoter in the sport.
Hatton, 31, was found guilty of misconduct and fined £20,000 plus costs after allegations about use of cocaine.
A BBBC statement said his actions were "detrimental to boxing's interests".
Though now in a rehabilitation clinic and facing a police inquiry, his solicitor said Hatton was "extremely pleased" to keep his promoters licence.
Gareth Williams, who is also the chief executive of Hatton Promotions, added: "I'm very pleased to report that it business as usual, I can't make that message any clearer or any louder.
"Ricky's well aware of the decision. He accepts and respects it."
The Manchester fighter won world titles at two weights and his last fight was his second-round knockout defeat by Manny Pacquiao in May 2009.
Hatton made his professional debut in 1997 and won 45 of his 47 bouts.
"Mr Ricky Hatton MBE was legally represented... to answer charges of bringing boxing into disrepute arising out of incidents of alcohol and drug abuse by him which had been reported widely across the media," said the BBBC in a statement.
"The board is especially concerned to keep the sport of boxing free from drugs, whether taken for recreational or performance enhancing reasons, and to be vigilant in identifying and dealing with cases of alcohol abuse."
It added: "Ricky Hatton is not an active boxer and his current physical condition is such that the board decided to withdraw his boxer's licence."
Hatton also had his manager's and second's licence revoked.
The BBBC statement continued: "Ricky Hatton's manager's and second's licences allow him to have close, day-to-day contact with participants in the sport and the board has taken the view that his conduct and present circumstances make such contact wholly inappropriate.
"Consequently, the board has decided to withdraw such licences."
The BBBC decided not to withdraw his promoter's licence as "Hatton Promotions is a large organisation employing a number of experienced individuals in varying roles".
The next event for a boxer in Hatton's stable is for highly-rated Scott Quigley, who will fight in his native Bury on Saturday.
The following Saturday Steve Foster Junior takes on Levan Kirakosyan at the Reebok Stadium in Bolton for the European super featherweight title.
"We've got [more] shows planned for the rest of the year and we've got really exciting things in the pipeline," added Williams.
"Ricky's put in place a three-year plan and we're half-way through that. We want to continue to grow and grow."
In not withdrawing his promoters licence, the BBBC said they have taken into account how many innocent people would have been affected.