Just found this in an interview done around the time of last years Vegas fan fest. Thought I'd pass this along for anyone tat hasn't seen it. XD

Original Interview

Press: What is your official stance on player-run “brothels,” wherein two consenting players have cybersex in exchange for in-game currency? [This was a contentious question, and one that Yoshida seemed blindsided by. -Ed]

Yoshida: First of all, there is a user agreement that all players have to agree to before they can even start playing Final Fantasy XIV. Within that user agreement is a clause that prohibits any unacceptable conduct to this end, including behavior that infringes upon laws. Any players who violate those rules will be punished by banning or other penalties. This applies no matter which end of the exchange a player is on. Everyone who plays Final Fantasy XIV is subject to investigation for violating the terms of service, period. Because Final Fantasy XIV is a worldwide game, there is the potential for players from many different regions to interact with one another, and we have legal support available to assist us in investigations to this end in many countries. If you see someone engaging in this type of behavior, we ask you to report it.