Today, when the future belongs to technology, especially cybersecurity and artificial intelligence, a key role is being played by Internet of Things (IoT) devices. The rapid growth of the IoT in Albania is bringing benefits but is also increasing security and privacy risks. Considering the law and examining the relevant challenges that this technology faces it will be provided an analysis of the cybersecurity and privacy of IoT in Albania. This article will also address the current measures and strategies that are in place and how they can be improved. The assessment of IoT cybersecurity in Albania has been carried out considering the current weaknesses of these devices and the incidents that have recently occurred around the world. This article also addresses a Smart City case study that is expected to be implemented in Albania, where the expected impact is analyzed. Conclusions shows that although Albania has made great progress in the field of cybersecurity, it needs to improve its IoT security framework and achieves this by incorporating new legal reforms, technical measures and IoT awareness programs to avoid/mitigate potential risks and align with European standards.