If the goal is to police and/or suppress, using this system means that your targets don't have to carry a phone (and that you don't need to have access to the phone's data).
If you do that, you can just simplify it down to an automatic bluetooth beacon that identifies you to the government- and if you don't carry one you're not allowed out in public.
I think they just don't want to be quite so blatant and obvious about it.