I had the same problem, BUT there is a solution...

1. Install libqca2-plugin-gnupg and libqca2-plugin-ossl

2. Restart Psi

3. Select your key in the Psi account properties

4. Restart Psi

5. Done.

The problem is/was the change of the crypto architecture to QCA2.

-- 
PSI can't find GPG key [ERROR: This message is encrypted, and you are unable to 
decrypt it.]
https://bugs.launchpad.net/bugs/212813
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