When we decided to purchase an apartment here, we provided them with logs and details of how we got the money in the first place (selling an apartment), the transfer of crypto, records of selling it on an exchange.
It's not ideal but it's a requirement for AML when buying a house here. We were not given any difficulty, but we did provide more records and details than you'd typically be expected to if we had made a bank transfer.
Personally I think AML requirements are bullshit and don't prevent money laundering. But we don't have much of a choice but to comply with them when purchasing an apartment. Crypto thankfully didn't cause a problem for us here. It's possible some lawyers would be more nervous accepting proceeds that have been tainted by crypto though.
RE: Bitcoin and Getting Money Out of China