Same here since upgrade to 16.10, working in the command line.

I've tried installing pinentry-gnome3 1.0.0-1 from the Z release without
success.

When encrypting, no default recipient is detected due to a supposed
missing private key. I can still encrypt when asked for recipients in
the command line, giving my ID:

$ touch x
$ gpg -e x
gpg: Oops: keyid_from_fingerprint: no pubkey
You did not specify a user ID. (you may use "-r")

Current recipients:

Enter the user ID.  End with an empty line:

When decrypting I'm not asked for any keys, just getting this error:

$ gpg -d x.gpg
gpg: encrypted with 4096-bit ELG key, ID XXXXXXXXXXXXXXXX, created 2016-09-15
      (personal info removed here)
gpg: decryption failed: No secret key

Everything works normally in a Trusy schroot in the same machine, using
the same .gnupg folder.

I hadn't heard about pinentry until reading this bug report, anyway.
Never used it.

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https://bugs.launchpad.net/bugs/1647364

Title:
  gnupg: No secret key (gpg-agent / pinentry interaction issue)

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