Let's say a citizen is able to launch a rocket or a weather balloon into space with an electronic device (probably a GPS) and a small gnome attached on it, would it be legal?
Does this require to notify government or a particular agency?
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Technically these are unmanned (but not ungnomed) drones and the law about them is here.
If your craft in flight is less than 35kg you do not need permission, however, a craft that small is not going to get to 100km (the boundary of "space"). You therefore need permission ... and insurance in case it falls on anything or anyone breakable.