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.
Well, I wouldn't push my luck too far. Especially when governments (particularly the US government) randomly picks people it deems suspicious. It's like the "Russian Roulette". You'll never know when the government decides to hunt you down for no reason. It's best to be prepared for the worst. In some sense, being paranoid to help protect your privacy is a good thing. Bitcoin is under the scope of mainstream governments due to its decentralized nature. Since the Blockchain is transparent by design, transactions can be easily linked to your identity. To avoid this, just buy BTC in-person or P2P. End of story.
Hopefully, people get ahold of most of the circulating supply to avoid massive concentration of power among a few. As long as decentralization is preserved, there should be nothing to worry about.
