Because nowhere in the world they ask you to register your phone with your passport or id. Massively regressive and controlling measure. Yeah I know pre-approved sets are also available but not everyone buys those. Certainly not those who come from abroad, those ikka dukka foreigners too.
This affects the industry in a negative way. Not only tech industry goes down but also tourism. Making things difficult for everyone, businesses and tourists alike.
There's a reason we're one of the worst countries in the world to do business in.