Ostensibly, this edict was created to codify the long-standing tradition of separation between the Magimundi and the world of the Mundanes. It had long been considered to be a matter of safety to ensure that the Mundane world viewed all magic as the stuff of myth, charlatans, and family entertainment. It was one of the first Edicts agreed upon by Solaris and Destiny provinces, and coincides with the founding of the Magimundi government in 1610.
This prohibits revealing the truth of the Wizarding World to a mundane absent certain extenuating circumstances, as well as forbidding the exchange of mundane currency for Leeuwendaalders and vice versa. Violation of this Edict rarely results in Confinement to Avernus unless a wizard has demonstrated a history of disruptive behavior or has interfered with the Mundane world on a grand scale intentionally and with the goal of personal gain.