Could I use the verb "to impound" as in "I got my driver's license impounded for........"?
The only thing I am aware of being impounded is automobiles. If you park in the wrong place, or collect too many unpaid violations, they can tow your car to the "pound." Then you have to pay your fines, plus extra impounding fees, in cash if you want your car back.
A license might be revoked or suspended. If an officer of the law physically takes your driver's license, you might say it was confiscated.