Of course, they will have KYC. Their Telegram admin confirmed it already (Quote: 'Anyone who wishes to participate will have to go through KYC (know your customer)') and it's also stated in their whitepaper. So no need for further discussions imho.
How about the privacy issues? Did the team comment on that?
What do you mean exactly with 'privacy issues'? If you are afraid that your personal data, which you have to submit in order to get KYC verified, falls into the wrong hand, there's probably not much that I can say to calm you down. It's the same with every project that has KYC and most of the time the projects also hire a provider that takes care of all the KYC stuff.