Side-loaded malware has been an epidemic in SE Asia, and there are MILLIONS of dollars stolen (mostly from pensioners!) via side-loaded malware disguised as gambling apps - the local population is particularly suspectible to gambling, especially the older generations that are not so tech-savvy.
It's good they decided to do something about it.
I'm sure if my grandma saw something like that, she wouldn't click it. This way, people who want to stay in a closed garden are protected, while those who want full control have it. The current implementation seems designed for state interests, not the people's.
It shouldn't be impossible. Not every FOSS developer will want to register, or be mature enough, or may be from sanctioned countries, and so forth.