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I have never made a large withdrawal by exchanging 1 BTC to fiat but what I know is that Indodax sets a daily withdrawal if I'm not mistaken 250,000,000 IDR if you want to make a higher withdrawal then you can increase the limit again.
The limit depends on the level and my withdrawal limit for the exchange is the same as the daily withdrawal limit so that large withdrawal amounts need to be done several times on different days.
But I also don't know for all countries how the government enforces it, but for our country there will be no question because exchanging BTC to fiat is very common in the sense that many people do it without the need for banks to ask where this is from because the government has supervised and legalized it as a commodity asset.
Correct. This is understood by all crypto activity actors. As I said before, we cannot avoid taxes and tax officials or bank officials no longer arouse feelings of suspicion when there are people whose transaction history comes from crypto exchanges.