It would no longer be a utopia. A surveillance state directly removes the rights of its citizens to privacy. Without that basic right, it could not be considered a utopia. If a country were to do that, then it is implied that they are going to arrest any citizen they see "stepping out of line," whether that be breaking the law, speaking out against the nation, etc. The constant surveillance of the citizens, if they knew about it, would make them either break laws to find a way around it, or they would become constantly paranoid and suspicious of everyone and thing around them.