Paraffin wax is insoluble in water, and only really soluble in ether or benzene.
There is no contamination between the red wax and the cheese. If there were then the cheese would show the red colouring. Besides the paraffin wax is indigestible and just passes through the gut. It's not toxic to us; well, not as wax around cheese it's not. Breathing it in as it breaks down might not be so healthy.
Food grade paraffin wax is considered very stable, very safe and not a food contaminant.
http://jamjarshop.com/paraffin-wax-400g
and from the safety data sheet….
"
Eye Contact: Not expected to be an eye irritant
Skin Contact: No harmful effects from skin adsorption.
Inhalation: Vapors emitted from molten wax are expected to have slight degree of irritation
Ingestion: No harmful effects are expected.
Acute Toxicity Values: Low acute toxicity"
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