They don't, and they don't even block F-Droid. You can also just disable Play Protect (though Google won't let you while you're on a call, probably a smart move). According to the Singapore police, scammers also have victims download VPNs of Google Play to work around the regional restrictions.

I don't think the restrictions are doing much for victims. I assume Google was pressured into doing this by the authorities, or may be doing this to get in a good spot politically.