Lawmakers on Wednesday passed the Copyright (Amendment) Bill.
The amendments include bringing in "technology-neutral exclusive communication right" into the law, which allows copyright owners to communicate their works through any mode of electronic transmission and specifies punishment for violating the newly-covered right.
More exemptions were added for "certain common internet activities", including satire, parody and commenting on current affairs.
The government had twice attempted to amend the copyright law but failed to get its proposals through lawmakers.
Legco on Wednesday also passed legislative amendments that will see the setting up of a licensing regime for service providers of virtual assets (VA).
Secretary for Financial Services and the Treasury Christopher Hui said VA exchanges, similar to traditional financial service providers, will be covered by the city's anti-money laundering and counter-terrorist financing laws.
Anyone engaging in the VA exchange business will have to be licensed by the Securities and Futures Commission.
"For VA exchanges, a comprehensive and balanced regulatory framework can protect investors and promote responsible and sustainable industry development," Hui said in a statement.