The reason they want to limit movement is the exact reason why Tsarist Russia and its descendant, Soviet Union, and modern Russia ( do people realize modern Russia still has location-tied internal passports complete with mandatory police registration?) had/have internal passports to limit movement. This allows to own slaves more efficiently.The purpose of the "vaccine passport", as is now becoming apparent in the United Kingdom, is to limit movement of the population not only externally but also internally.
Many states have had internal passports, eg Tsarist Russia, Soviet Union, apartheid South Africa, etc. Vaccine passports are bringing this back.
I'm not really sure why the oligarchy wants to limit movement like this, but it might be because they fear that the people might discover who the oligarchs really are and might lynch them.
A slave is more limited in their choices if they can't go to another region and have to continue working for local monopolistic corporations with poor pay and work conditions, for example. This way is easier to control wages, among other things. This way is also easier to keep a tab on people and watch what they're doing and to enforce restrictions on activities. A person moving between jurisdictions often can through the cracks in various restrictions.
Feudalism was location-based where peasants belonged to the landed feudal and could not leave. With nationwide and multi-national corporations it works a bit differently, but it's much easier to control people tied to their locations. Plus, this benefits various local corrupt "tsars" and gives them more power.