Haiti's Planning and External Cooperation Minister Aviol Fleurant said he was rescinding Oxfam's authorization for two months on the grounds of "serious failings" by Oxfam between and 2010 and 2011.
The two-month suspension comes after charity chiefs revealed Oxfam has received 26 allegations of misconduct since the Haiti sex scandal erupted two weeks ago.
Oxfam has apologised over allegations that staff exploited victims.
A goat stands next to an Oxfam sign on a kiosk that was used to distribute water in Corail, a camp for displaced people of the natural disaster of 2010, on the outskirts of Port-au-Prince, Haiti, February 17, 2018.
The aid group said senior members of staff met officials from the Haitian government on Thursday and pledged their commitment to cooperating with the probe.
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The Caribbean nation's government announced the United Kingdom arm of the charity has had its authorisation to work in Haiti revoked for at least two months over "serious failings" between 2010 and 2011.
Oxfam said in a statement: 'Oxfam is committed to putting in place a number of wide-sweeping initiatives to improve its global safeguarding policies and practices, including the establishment of an independent Commission and putting more staff and resources into its safeguarding teams'.
The UK Government is also deciding whether to end Oxfam's multi-million pound yearly funding, while the charity has said it will not bid for any new Government contracts at present.
It said it was investigating the allegations and whether any of the prostitutes involved in the scandal may have been underage.
Allegations of misconduct surfaced through media investigations and an internal Oxfam report.
It has also seen thousands of individuals cancel their regular donations. Last week, the charity formally apologized to Haiti and announced a plan to combat sexual abuse, including a new vetting system for potential employees.