Bolivia
The central bank of Bolivia, El Banco Central de Bolivia said in a statement:
It is illegal to use any currency that is not issued and controlled by a government or an authorized entity.
China
It is a common misconception that bitcoin and digital currency are totally banned and illegal in China, but China has become the worlds largest bitcoin trading market. The bitcoin ban is strictly on banks, as the central banking authority, The Peoples Bank of China is owned 70% by the Chinese government. Banking institutions and employees are banned from engaging in bitcoin business through banking, as well as servicing or doing business with the bitcoin industry. Trading or mining in bitcoin is not illegal for common citizens.
Ecuador
The ban by Ecuador makes the most sense of any ban, as they are building a national electronic cash system, so they feel the need to protect their new currency from something clearly superior. A decentralized currency of finite production that cannot be manipulated by governments or banks might dim the lights on their new program in the eyes of the public, which offers none of those benefits.
Iceland
As of March 19, 2014 the Central Bank of Iceland issued a statement explaining the legal status of digital currency in Iceland. Purchasing them may violate the Icelandic Foreign Exchange Act, which specifies that Icelandic currency cannot leave the country. A nebulous designation, but it sounds like it is banned, in effect.