Hi,
Just yesterday I was commenting something on this topic (my local board), let me opt for a general opinion before the three specific questions.
I do not know where you are in the world but if you name Los Angeles I suspect that you are in the United States, in any case it does not matter but the appreciations with cash vary a lot, someone's need to have cash in the United States varies a lot with someone in any other part of the world, in fact even the sports seasons, I remember that in the soccer world cup in Russia, in a popular square exchanges were made, contact in LBTC, there were also cafes, pubs, where you could do the exchange, in these public places only word of mouth works, that is, the simple question to anyone "bitcoin for cash" will take you to those sites, dangerous? of course, but tourists are a bit careless, not alls but it happens.
The other issue is legal where the exchange is made, this point is the most complex, even more that the project.
Suppose that will be a global App (!) so at that time "be your own bank" ...it makes sense, when you do a face-to-face p2p exchange regardless of whether it is sale or purchase, you understand the power that bitcoin has even more when the exchange currency is from the country you visit, and there we enter "international waters" it is not about avoiding responsibilities, on the contrary, that is why I bring it in context, in reality your three questions they are not the real priority in the solution or an obstacle to the implementation of the project, in fact they develop by themselves in their environment, there is a standard that works there, some change "colors" and the "small letters" but it's the same in the long run.
That said, it is to have the Uber (keeping the distances) of the Apps for cash exchanges with bitcoin, the KYc is elementary and necessary for some users according to some countries, there will be other users that they won't have to but they will have to work for their reputation.
KYC, it should be a choice, not a condition. It is a complex matter from a legal and even security point of view. But unless you do the swap with mask, privacy is dramatically decreased.
Safety! the second most important substantive question after the legal issue or the first, well when the guys from UBEr (excuse the example again) created their app they did it for "service" but in other countries the UBEr is successful because of "security" .
Something so complex to manage remotely for an app to impose order (security) is with simply ratings, I do not care about the comments as long as their percentage is 100% "Trust" in a relevant number of transactions at least 100-500, 99% no longer It serves me I look for the one that has 100%. This is a money matter it has to be perfect.
this appears in traditional apps as a simple and normal data, when it should be in red, have sound and make your phone blink (figurative sense ... but it should be something like that)
On the other hand, it is not important for the bitcoin niche, but a project like this has to have a first and last name, by its very nature if I am going to use your app tell me who you are, in a trade of this type, two faces will be seen , we must begin to trust the owner of the app.
I would recommend that you do a market study in areas where parallel markets fluctuate in various currencies, for example the border of Mexico and Canada, if you are in the United States, outside there South America is a good market niche, Asia too.
In general, other countries or let's say better than other people would select traditional ways such as going to an exchange, bank, cash. You have to think that in essence this is your main competitor.
Anyway, I'd rather see an app-based "ATH walker" than a traditional ATM.
The programming for any app of this type is already done, it is necessary to change its soul, create the first secure, reliable p2p social exchange network with bitcoin.
...someone with bitcoin at Starbucks to have a coffee ... for example.
Hopefully you consolidate your project the way you want it, the main thing is that you succeed.