i liked your goal, of letting people exchange their cash into bitcoin fast and without the bullshit verification. but despite being good it has a big flaw that you already know and are mentioning it in your cons, which is scammers which will try and use this service to turn their illegal cash (like from stolen credit cards) into untraceable bitcoin.

on top of that, your maid idea has a big fee of 5% which i think is going to be a problem in the future for getting people on board.