Werewolves are very much real and they have been banned to a secluded area of the world in forests that are uncharted to humans. The reason why this has been done is that there are too many people who have seen them lately and the idea of them being a myth could be in danger. Until these mistakes are fixed by time and new generations are born, the wolves are to remain in this area of the world that will remain undisclosed because it has no borders or fences.
The reason why they are free to roam in the open is that they don’t want humans to discover them either. They know that humans would try to study them in order to learn how they became werewolves and this would make them angry. They don’t want to hurt humans but in such a case they would be forced to do it.