In IC terms, the rationale of the Campus is that monsters are issued a license to visit and hunt there. That would naturally come with allowances and restrictions on what the monster was able to do. The students 'belong' to the school and it is a basic that monsters are not allowed to interfere in that, since the students are the school's resource. Think of it like test driving a car in a showroom

Such things as hypnotism, M/s, physical addictions and so on, have the potential to remove a student from the school's ownership or interfere with their availability to be used as the school intends. However, the school administration do have the ability to grant extended licenses to specific monsters if they so wish. This is in much the same way that the school administration also allows Head Girls and Prefects to go beyond what is allowed to normal students.

In OOC terms you might think of that as being an invitation to prove over time that you, currently a new player and unknown quantity, can be trusted to use an extended scope wisely for the benefit of the game.

Ah, that makes much more sense.

In this case, I'm of course willing to 'rein in' Loth's capabilities during school RPs as per Shokushu's rules until such time as he proves himself worthy of one of these licenses.

*Goes off to do corresponding edits.*

Edited in several Shokushu specific self-limitations.

You (and by this I mean all monster players reading this) might also consider that at any one time, only one or perhaps two representatives of an entire race have access to the Campus. This is an extremely privileged position somewhat equivalent to winning a major global lottery. So it is unlikely they would do anything to imperil their status.