Such activities would raise suspicion from the bank. Even if the ATM was KYC-free. The camera installed on the machine, is more than enough proof to help expose your identity.
Expose your identity yes, but I feel that if you live in a country that isn't openly hostile to Bitcoin, then banks will not care much if you're P2P selling through ATMs as long as it isn't an abnormally large amount for you that you're handling.