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Square Enix Prohibited Behavior
In general, all expressions of an obscene/indecent nature are prohibited. If a report has been filed and the prohibited activity is confirmed, a penalty will be issued.
This applies to not only text-based expressions such as chat but also to expressions that use emotes and or character movements in ways that are sexually explicit.
Examples of violations that use character motions
Using a combination of emotes and motions to mimic grinding against another character
Using movements that are evocative of sexual activities
Note that obscene/indecent expressions can range from relatively mild to severe, and some of the relatively mild expressions may be tolerated among friends. Therefore, in a private environment where only friends are present, whether it is tolerated or not, a case will be judged on whether or not a report was made.
Example 2
In the case of role-playing involving mildly sexual expressions (such as erotic role-playing) with a consenting group of two or more players, if it is conducted in a private area, it will not be considered a violation unless a report is made.
However, if you encourage or invite a player to participate in such role-play without being certain of their consent, there is a high possibility that you will be reported and penalized. Please be very careful.
As you can see, expressions that fall under this category are generally prohibited, so if even one player who witnessed such an expression finds it offensive, there is a high possibility that it will be reported. What is considered offensive will vary from person to person, so if you believe there is any chance that you may offend someone, you should refrain from making such expressions.
Please note that Square Enix may issue a penalty at its discretion even if a report has not been filed but the act was found being conducted in public areas such as Say and Shout, search comments, Party Finder, on online video/streaming services, if the behavior is found to violate real world laws, or if it may be considered a problem based on the game's entertainment board ratings.