I suspect the entire process will result in more restrictions or limits and their using anti-carrot + stick to get people to comply.
I got a similar message via mail: (bold is my emphasis). I interpret this to mean that if you update the app w/o "re-registering" then the limit will kick in.
DJI will soon introduce a new application activation process for international customers. This new step, to take effect at the end of this week, ensures you will use the correct set of geospatial information and flight functions for your aircraft, as determined by your geographical location and user profile. All existing flight safety limitations, such as geofencing boundaries and altitude limits, remain the same.
Even if you have registered when activating your aircraft upon purchase, you will have to log in once when you update the new version of DJI GO or GO 4 App. If you have forgotten your password since your initial login, you can reset it using a function within the DJI GO and DJI GO 4 apps.
You will need a data connection to the Internet for your smartphone or tablet when you log in, in order to verify the account information and activate the updated software or firmware. If this activation process is not performed, the aircraft will not have access to the correct geospatial information and flight functions for that region, and its operations will be restricted if you update the upcoming firmware: Live camera streaming will be disabled, and flight will be limited to a 50-meter (164-foot) radius up to 30 meters (98 feet) high.
The feature applies to all aircraft (except standalone A3 and N3) that have been upgraded to the latest firmware or when using future versions of the DJI GO and GO 4 apps.
DJI encourages pilots to always follow applicable laws and regulations in the countries where they operate, and provides information about these regulations on its FlySafe website at flysafe.dji.com.